GLXY Stock Isn’t Done Tumbling, But CEO Mike Novogratz Says Bitcoin Bottom Is Like Porn: ‘You Know It When You See It’

According to him, Bitcoin’s price is closer to the bottom than it was at the beginning of a bear market.

• The company reported a higher loss per share and revenue below expectations in its fourth-quarter results. 
• The shares fell 16.87% on Tuesday, posting their steepest one-day drop in nearly 20 months.
• CEO Mike Novogratz said the recent pullback in crypto stems from early Bitcoin investors taking more profit than the market anticipated.

Shares of Galaxy Digital (GLXY) were on track to fall for a second straight session on Wednesday after posting their steepest one-day drop in nearly 20 months.

GLXY’s stock fell 16.87% on Tuesday after the company missed earnings and revenue expectations in its fourth quarter (Q4) earnings. This is the biggest hit it has taken since April 2024, according to Koyfin data.

The company posted a loss of $1.08 per share, compared with expectations for a $0.92 loss. Revenue came in at $10.26 billion, lower than the anticipated $12.14 billion by Wall Street. 

After hours, the shares edged 0.41% lower. However, retail sentiment around the company on Stocktwits flipped to ‘neutral’ from ‘bearish’ territory over the past day as chatter surged to ‘extremely high’ from ‘normal’ levels, with platform data showing a jump of nearly 268% in message volume.

Crypto Market Bottom Is Like ‘Pornography’

“It feels pretty chill right now,” CEO Mike Novogratz said on the earnings call, addressing investor concerns about a potential crypto winter. According to him, Bitcoin (BTC) is closer to the bottom than it was at the beginning of a bear market. Novogratz stopped short of calling an exact bottom, invoking Supreme Court Justice Potter Stewart’s definition of hard-core pornography.  “You don’t necessarily have to pick the bottom… but you’ve got a sense of when it turns,” he said. “Like pornography, you know it when you see it.”

Profit-Taking Weighs On Bitcoin Prices

Novogratz postulated that the recent weakness in the crypto market, which recently drove Bitcoin’s price down to November lows, is because diamond hands – investors who have been holding Bitcoin since the early days – are taking more profit than was anticipated by the market. “We had one customer alone who sold $9 billion worth,” he said, adding that it will probably be a while before these “big chunky positions” work their way through the market.

GLXY’s stock has fallen more than 3% so far this year but has recorded a gain of nearly 23% over the past 12 months. The shares have also been weighed down by weakness in the broader crypto market. Bitcoin’s price was trading at around $76,500 on Tuesday night, down 2.9% in the last 24 hours. 

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