Following its $2.9 billion acquisition of crypto derivatives platform Deribit, Coinbase Global Inc. is set to become the first digital asset company ever added to the prestigious S&P 500 index, effective 19 May 2025.
Shares of Coinbase (COIN) jumped on Monday evening after the announcement that the San Francisco-based exchange will join the benchmark index.
The move comes as Discover Financial Services exits the S&P 500 following its acquisition by Capital One Financial.
To qualify for the S&P 500, companies must meet strict criteria, including a market capitalisation of at least $18 billion, strong liquidity, and four consecutive quarters of positive earnings under GAAP.
Despite recent financial setbacks, including a drop in first-quarter profit and a decline in revenue for 2025, Coinbase has maintained its profitability, a key requirement for entry into the S&P 500.
The company's latest net income was $65.6 million, down from $1.18 billion a year earlier, but still enough to meet the index's stringent standards.
This achievement secured its spot in the index, especially after being overlooked in previous rebalancings.
S&P Dow Jones Indices confirmed that Coinbase would replace Discover Financial Services, which is exiting the index as Capital One (COF) prepares to finalise its acquisition of the company by 18 May.
Source: S&P Global
The index committee typically removes companies involved in mergers or acquisitions and replaces them with eligible firms that meet all listing requirements.
After the announcement, Coinbase's stock surged over 9% in extended trading, reaching $226.15 per share.
In regular trading earlier on Monday, the stock had already gained nearly 4%.
The surge marks a significant moment for Coinbase, particularly as it positions itself within the same benchmark index as traditional tech giants.
The announcement arrives as Bitcoin trades above $100,000, renewing optimism in digital assets.
Coinbase, the largest crypto exchange in the U.S. by trading volume, debuted on the Nasdaq in 2021, and despite experiencing a 17% decline in its stock in 2025, the company continues to demonstrate resilience.
The stock's rise after the announcement indicates that its inclusion will likely attract more investors, particularly index-tracking funds that are mandated to buy S&P 500 constituents.
Celebrating the milestone, Coinbase shared on X:
"First they ignore you.
Then they laugh at you.
Then they fight you.
Then they add you to the S&P 500."
Coinbase’s addition to the S&P 500 aligns with the index's growing tech-heavy composition.
Major companies in the index, such as Dell and Palantir, represent sectors closely related to technology and innovation.
Coinbase now joins their ranks, illustrating the increasing impact of digital currencies on the global financial system.
As Coinbase prepares for its inclusion on 19 May, all eyes will be on the broader implications for the cryptocurrency industry and its integration with traditional financial markets.
Frank DeGods, also known as Rohun Vora, reflected on past decisions, admitting to prioritising community appeasement over long-term vision. He emphasised the importance of standing by convictions and offering flexibility, as demonstrated by the recent return to Solana and the adoption of cross-chain interoperability.
AnaisThe slowdown in US CPI inflation intensifies rate cut pricing, but several hawkish officials support the dollar. Gold fell first and then rebounded to reclaim $2410, while Bitcoin bulls surged past $67,000.
AlexThe U.S. court has announced that two Chinese nationals have been arrested and arraigned on charges of money laundering through shell companies involved in crypto investment fraud.
MiyukiSenate's bipartisan approval of H.J.Res. 109 challenges SEC's SAB 121, pushing President Biden to decide amidst political and industry pressures.
WeiliangBitcoin's price has solidified its position just above the crucial support level of $65,000, with cryptocurrency traders viewing its pattern as robust. Some even suggest that no significant corrections are expected soon and the price may continue to rise.
AlexThe USDT stablecoin continues to be entangled with illegal forex transactions, prompting Kraken to announce that it is evaluating the possibility of delisting European Tether pairs.
MiyukiCoinbase analysts are confident that an Ether spot ETF will be approved soon, with Ether surging to $3,126 at one point.
WeiliangWeb3 is still in its infancy, contending with critical challenges such as user-friendliness and infrastructure development. So will Web3 fail to realise its transformative potential and let Web2 continue its dominance?
CatherineVenezuela announced a cryptocurrency mining ban over the weekend, threatening to disconnect all domestic cryptocurrency mining farms from the national power grid.
AlexRecent resignations at OpenAI, including Chief Scientist Ilya Sutskever and Jan Leike from the "superalignment team," follow disagreements over prioritising safety amid the launch of GPT-4o. Concerns linger over OpenAI's shift towards profit and potential security risks in collaborations like Apple's iOS 18 update integrating OpenAI technology.
Weatherly