Novogratz Buys $9.9 Million of Galaxy Shares Amid Stock Slide

Galaxy Digital CEO Michael Novogratz bought nearly $10 million of the company’s shares, adding to his holdings as the cryptocurrency and data center company’s stock extended its decline.

Novogratz acquired 760,000 Class A shares on Thursday through Galaxy Group Funding ECI U LLC, according to a Form 4 filed with the SEC. Galaxy shares fell about 7% to roughly $13 in Nasdaq trading on Nov. 5, following a roughly 17% decline the previous session. The stock was down about 41% from its Oct. 6 close.

The purchases comprised 528,757 shares at a weighted-average price of $12.694 and another 231,243 shares at $13.632. Individual transactions were executed at prices ranging from $12.34 to $13.87, putting the combined average at about $12.98 a share.

The buying comes as Galaxy expands its AI infrastructure business alongside its digital asset trading, lending and investment operations. On Oct. 27, the company reported third-quarter net income of $323 million, compared with an $85 million loss in the preceding quarter. Its treasury and corporate segment accounted for $395 million of the group’s $455 million in adjusted earnings before interest, taxes, depreciation and amortization.

Galaxy’s data center business generated $69 million in adjusted EBITDA during the quarter, up from $11 million in the second quarter, reflecting the first full quarter of operations under its initial Helios lease with CoreWeave (NASDAQ: CRWV). Galaxy said it remained in discussions with prospective tenants for another 830 megawatts of approved capacity at Helios II that had yet to be leased.

Novogratz’s purchases also followed Galaxy’s announcement that its board had approved an additional $200 million in share repurchases. The company said it had bought back 9.8 million shares through its third-quarter reporting date.