Situational Awareness LP exits Galaxy Digital position as crypto broker posts improved losses

Situational Awareness LP, the hedge fund managed by Leopold Aschenbrenner, has sold its stake in Galaxy Digital (NASDAQ:GLXY), according to the latest 13F filings. The fund initially acquired 2.7 million shares in the fourth quarter of 2025, marking its first appearance in the portfolio at that time. Aschenbrenner’s firm is recognised for its exposure to artificial intelligence, ranking 38th on Insider Monkey’s list of hedge funds with significant AI focus.

The exit comes shortly after Galaxy Digital reported its financial results for the first quarter of 2026. The firm recorded a GAAP net loss of $216 million, a marked improvement from the $482 million net loss incurred in the previous quarter. Adjusted EBITDA also narrowed significantly, dropping from a loss of $518 million in the fourth quarter of 2025 to a loss of $188 million in the first quarter of 2026.

Despite industry-wide declines in trading volumes, Galaxy Digital’s Global Markets division demonstrated resilience. The division’s adjusted gross profit rose 3% sequentially to $31 million, suggesting the firm captured market share and maintained stable execution volumes during a challenging period.

In the Asset Management division, the firm attracted $69 million in net organic inflows. This activity helped keep total assets under management stable at approximately $5 billion, alongside $3.2 billion in assets under stake. The firm, which engages in digital asset and data centre infrastructure businesses across North America and internationally, continues to navigate a volatile macroeconomic environment.

While some market participants view the underlying core businesses as healthier than during previous cyclical downturns, institutional positioning appears to be shifting. The divestment by Situational Awareness LP highlights the diverging views on the crypto broker’s valuation and future trajectory amid evolving trade and technology policies.