Galaxy Digital, the crypto financial services firm led by Michael Novogratz, saw its stock drop to $24 on Tuesday — the lowest since January 2 and nearly 50% below its 2025 high of $45. Market cap has shrunk from $16 billion to $9.3 billion. More concerning is the head-and-shoulders pattern emerging on the daily chart, a technical formation that often precedes further declines.
Q4 Net Loss Swells to $482M, Full-Year Loss at $240M
The company reported a $482 million net loss for Q4, largely driven by depreciation on its crypto holdings. Annual losses reached $240 million, including one-off costs related to its public listing. Assets under management stood at $12 billion, with net inflows exceeding $2 billion during the quarter.
Galaxy's data center business — capacity doubled to 830 megawatts at its Helios facility — remains a bright spot, with a partnership with CoreWeave, an NVIDIA-backed firm. Still, the loss figure shocked investors accustomed to Galaxy's prior profitability in bull markets.
Novogratz Talks Pain as Technicals Point Lower
Novogratz struck a cautious note on the earnings call: "I do think we are at the lower end of the range. Anyone who has been in crypto for more than five years realizes that part of the ethos of this whole industry is pain." Yet he maintains Bitcoin and other cryptos will bounce back this year, which should eventually lift Galaxy's results.
Technically, GLXY has already broken below its 50-day and 100-day exponential moving averages, with the Supertrend indicator flashing red and RSI below neutral. The stock is now trading at the neckline of the head-and-shoulders pattern. If this level fails, bears will target $17.7 as the next support, with a potential drop to $15 if that breaks. The pattern suggests a trend reversal rather than a short-term dip — bad news for a stock already in a technical bear market.