Source : coinspeaker.com
Galaxy Digital wants to purchase 10.6 million of the company’s ordinary shares under the stock buyback initiative.
Shares of Galaxy Digital (TSE: GLXY) are extremely down, and the company’s Board has announced a stock buyback program. The crypto merchants bank said the share repurchase would begin amid the declines. The losses came in harder earlier in the week after the company revealed a sizable loss in its Q1 2022 financial report. However, the company said the Q1 losses were fueled by general market volatility. During the crypto market rally in November, Galaxy Digital’s shares were selling at $34. However, the share price had drastically reduced from its ATH to trade at $8.31. Also, the company has plunged nearly 22% in the last 24 hours.
Galaxy Digital Board Approves Stock Buyback Initiative
With the ongoings, Galaxy Digital is considering a buyback of 10% of its outstanding shares. Shares initially gained 5.5% on news of the buyback but corrected as crypto prices continued to fall. According to a press release, Galaxy Digital has gotten approval from the Board of Directors regarding the stock buyback program. Following the approval, the company plans to submit a notice to the Toronto Stock Exchange (TSE), which is the exchange for GLXY. Specifically, Galaxy Digital wants to purchase 10.6 million of the company’s ordinary shares under the stock buyback initiative.
“The Company may use the program opportunistically at times when it believes that the current market price of its shares does not reflect their intrinsic value and that purchasing its own ordinary shares is consistent with the objective of creating long term shareholder value.”
Further into the official announcement, Galaxy Digital highlighted ways it intends to continue bringing long-term value to stakeholders. Firstly, the company said it would invest in its business lines and grow its capabilities. Also, the crypto merchants bank plans to augment its capabilities via strategic investments and acquisitions. The company added that it would also endeavor to “opportunistically” optimize its capital resources and more.
More on the New Initiative
Furthermore, Galaxy Digital said the Bid would end a year after it commences. It could also end before the one-year duration once the company has acquired the stipulated number of shares. Moreso, the company has the authority to stop the Bid anytime it believes it is appropriate. While Galaxy Digital buys the shares, the company will adhere to the rules and policies of the exchange and buy at the current market price.
Galaxy Digital has not seen any profit in its stock performance in the past year. Since January, the company has shed 71.85% in the last twelve months and over 64%.
In addition, the company noted that Galaxy Digital Trading (GDT) had not recorded any operational or execution-related hindrances since the year began.
“The GDT counterparty loan and yield portfolio has experienced zero defaults, credit degradations or liquidations. Moreover, average collateralization levels remain well-over 100%,” wrote the company.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience.
Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.