Galaxy Digital (NASDAQ:GLXY) reported a sharply wider fourth-quarter loss, but CEO Mike Novogratz says market conditions may be nearing an inflection point.
Galaxy's Q4 Loss Ahead Of Expectations
Galaxy Digital posted a Q4 loss of $482 million, well above analyst expectations of about $282 million, as falling digital asset prices weighed on results.
The earnings miss sent Galaxy shares down over 15% over the past 24 hours.
Trading activity weakened during the quarter, with digital asset trading volumes dropping about 40% quarter over quarter after a strong third quarter.
Galaxy ended the year with $12 billion in assets under management, including $2 billion in net inflows, representing 34% organic growth. The firm is also expanding beyond crypto trading, investing heavily in AI data centre infrastructure.
The broader crypto downturn also hurt performance.
Bitcoin (CRYPTO: BTC) fell 23% in Q4 after failing to recover from a sharp sell-off following its October peak.
Novogratz Sees Opportunity In Pessimism
Despite the loss, Novogratz said he remains constructive on the market, arguing crypto may be trading near the lower end of its range.
He argued that periods of maximum pessimism often precede rapid reversals and potential accumulation opportunities.
Galaxy Head of Research Alex Thorn says Bitcoin's technical picture has become clearer, with a firm downtrend now in place.
January's rally stalled below $100,000, followed by a clean break of $80,000 and the formation of a new near-term lower low.
While there is still no clear evidence of accumulation signaling a durable bottom, selling pressure from long-term holders has eased, pointing to growing confidence at current levels.
If Bitcoin falls further toward the 200-week moving average near $58,000 or its realized price, he said those zones would likely serve as strong long-term entry points, consistent with past cycles.
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