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.
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