We recently published 10 Big Names, Bigger Losses. Galaxy Digital (NASDAQ:GLXY) was one of the worst performers on Thursday.
Galaxy Digital fell for a 7th consecutive session on Thursday to hit a new all-time low, as investors unloaded portfolios following a disappointing earnings performance, while tracking the marked drop in Bitcoin prices during the day.
At intra-day trading, the stock declined to its lowest price of $16.67 before gaining a few cents to end the day just down by 16.47 percent at $16.84 apiece.
In its earnings call, Galaxy Digital (NASDAQ:GLXY) said it swung to a net loss of $241 million last year from a $346.7 million net income in 2024, primarily due to lower digital asset prices and approximately $160 million one-off costs tied to Bitcoin mining infrastructure, its corporate reorganization, and the embedded derivatives on outstanding exchangeable notes.
Revenues, on the other hand, surged by 42 percent to $60.4 billion from $42.6 billion year-on-year.
Operating expenses were higher by 42 percent at $61.6 billion versus $43.4 billion in 2024.
In the fourth quarter alone, net loss stood at $481.7 million, reversing a $117.5 million net income in the same period in 2024, driven primarily by the depreciation of digital asset prices and a 24 percent lower crypto market capitalization.
Revenues were also lower by 34 percent to $10.37 billion from $15.8 billion year-on-year.
In other news, Galaxy Digital (NASDAQ:GLXY) mirrored a broader market pessimism after Bitcoin prices nosedived by 50 percent from its all-time high of $126,000 following news that the Treasury Department does not have the authority to bail out the crypto and its peers.
Pessimistic comments from Michael Burry also contributed to the drop. According to the investor who was able to predict the 2008 financial crisis, Bitcoin’s further drop to the $50,000 territory could evolve into a death spiral and push Bitcoin mining firms into bankruptcy.
While we acknowledge the potential of GLXY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
