Novogratz Buys More Galaxy Shares as Crypto Stocks Slide 8%

Galaxy Digital CEO Mike Novogratz announced on Thursday that he is buying more shares of his own company, GLXY, one day after the stock closed down approximately 8% in a broad selloff of crypto-linked equities.

The purchase, disclosed publicly by Novogratz himself, arrives amid one of the sharpest single-session drawdowns for digital asset companies in recent months. Galaxy declined alongside the wider sector as Bitcoin fell 5.2% over 24 hours to $75,800, extending losses below the $76,000 level. Ether dropped 7% to $2,250. The Nasdaq Composite and the S&P 500 fell 5% and 3.4%, respectively.

Why is the CEO buying now?

Novogratz said he sees a substantial disconnect between Galaxy's market price and what he believes the company is fundamentally worth. He pointed to two long-term drivers: the migration of finance onchain and accelerating demand for AI infrastructure.

"The blue wave has weighed on companies like ours. I get it. But let's not confuse politics with long-term fundamentals," Novogratz wrote. "Finance is moving onchain and demand for AI is exploding. These are generational shifts that will play out across administrations and market cycles."

He framed both trends as generational rather than cyclical, arguing they will persist regardless of which party holds power in Washington. Galaxy has spent years building its business around precisely these two areas, he noted, positioning the insider purchase as a bet on that existing strategy rather than a new direction.

What does this change for practitioners?

An open-market purchase by a founder-CEO during an 8% drawdown signals, at minimum, that leadership does not view the selloff as a reflection of deteriorating fundamentals. For investors tracking insider activity at crypto-financial hybrids, the move provides a data point suggesting management sees valuation, not operations, as the problem.

The operational picture Novogratz cited is concrete. He pointed to progress at Galaxy's Helios project in Texas, where Phase I was completed on schedule and 800 megawatts of capacity have been leased under long-term contracts. For a company whose AI thesis depends on powering data centers, contracted capacity is the revenue base that outlasts market volatility.

Novogratz also said Galaxy will maintain engagement with Texas lawmakers and local communities under the new administration, emphasizing reliable electricity, water protection and local economic interests — a reminder that large-scale energy projects carry political execution risk that investors must underwrite.

How far did the selloff reach?

Losses spread across digital asset companies and Bitcoin miners with AI infrastructure exposure. Per Yahoo Finance:

• Coinbase and Strategy each fell 9%
• Robinhood and Circle each declined 10%
• Keel Infrastructure dropped 18%
• Cipher Mining, Bitdeer, IREN, TeraWulf and CleanSpark each lost more than 13%

The uniformity of the declines across exchanges, issuers and miners indicates the selling was sector-wide and macro-driven rather than company-specific. That distinction matters: it is exactly the environment in which insider buying carries the most informational weight, because management can attribute weakness to sentiment rather than execution.

What remains unresolved is whether the Helios leasing momentum and onchain finance volumes can decouple Galaxy's earnings from the political cycle Novogratz referenced. The next concrete checkpoint is Phase II progress at Helios and the pace of additional megawatt leasing, which will show whether the long-term contracts underpinning the AI thesis continue to accumulate through the downturn.