Galaxy Digital approves share buyback plan of up to $200 million

JH Kim

Summary

Galaxy Digital said it has approved a share buyback program of up to $200 million.
The buyback will be carried out in stages over the next 12 months and will cover Class A common stock.
The company said whether it proceeds with the buyback and its size may vary depending on market conditions and its capital management environment.

Digital asset (cryptocurrency) financial services firm Galaxy Digital has approved a share repurchase program of up to $200 million. The buyback is set to be carried out in stages over the next 12 months.

According to foreign media reports on the 6th (local time), Galaxy Digital received board approval to conduct share repurchases of its Class A common stock. The specific timing and method of the repurchases have not yet been disclosed.

Galaxy Digital is currently listed on Nasdaq and the Toronto Stock Exchange in Canada. If it proceeds with repurchases on the Toronto Stock Exchange, additional approval from local regulators will be required.

If repurchases are executed on Nasdaq, applicable rules cap the amount that can be bought back at up to 5% of total shares outstanding as of the start of the program. This measure reflects considerations around market liquidity and share-price volatility.

The buyback plan is being interpreted as part of Galaxy Digital’s efforts to maintain financial soundness and enhance shareholder value. The company added, however, that whether it proceeds with the repurchase and the size of any buyback could vary depending on market conditions and its capital management environment.