Coinbase Global Inc. (NASDAQ: COIN) is set to join the S&P 500, replacing Discover Financial Services, effective before trading begins on May 19, 2025. Coinbase replaces old-school financial firm Discover in the index.
This move, announced by S&P Dow Jones Indices, underscores the integration of digital assets into mainstream finance and highlights Coinbase’s evolution from a niche crypto exchange to a significant player in the U.S. financial system.
The announcement sparked an 8% surge in Coinbase shares during after-hours trading, reflecting investor enthusiasm.
Coinbase’s inclusion in the S&P 500, a benchmark index tracking 500 of the largest U.S. publicly traded companies, is a first for a cryptocurrency-focused firm.
Discover Financial Services is exiting the index due to its pending acquisition by Capital One Financial.
The S&P 500’s tech-heavy composition has recently welcomed other innovative companies like Palantir and Dell, and Coinbase’s addition further diversifies the index with exposure to the digital asset sector.
Since its direct listing on Nasdaq in 2021, Coinbase has capitalized on the soaring value of bitcoin, which recently surpassed $100,000, approaching its all-time high from January 2025.
The company has also benefited from increased institutional adoption, with regulatory approvals enabling the creation of spot bitcoin exchange-traded funds (ETFs).
These developments have solidified Coinbase’s role as a platform for retail and institutional investors navigating the crypto economy.
However, Coinbase’s stock remains volatile, trading at $207.22 with a market cap of $53 billion—well below its 2021 peak of over $357.
To qualify for the S&P 500, companies must demonstrate profitability in their most recent quarter and cumulative earnings over the prior four quarters.
Coinbase met these criteria, reporting a net income of $65.6 million, or 24 cents per share, in its latest quarter, down from $1.18 billion the previous year due to adjustments in the fair value of its crypto holdings.
Revenue grew 24% to $2.03 billion, driven by transaction fees and subscription services, though it fell short of analyst expectations by $200 million.
Coinbase’s strategic moves bolster its growth trajectory.
Last week, the company announced a $2.9 billion acquisition of Dubai-based Deribit, the largest deal in the crypto industry, aimed at expanding its global derivatives business.
This acquisition, combining $700 million in cash and the rest in stock, positions Coinbase to capture a larger share of the international market.
Additionally, the company reported a 49% quarter-over-quarter increase in USDC stablecoin balances, signaling solid user engagement.
The S&P 500 inclusion is expected to drive significant inflows from index funds and ETFs, boosting Coinbase’s liquidity and visibility.
Analysts compare this milestone to Tesla’s 2020 entry, noting its potential to legitimize crypto in traditional finance.
Coinbase’s CEO, Brian Armstrong, emphasized the achievement as a step toward economic freedom, stating,
“This reflects how far Coinbase and the crypto industry have come.”
As regulatory clarity improves under a pro-crypto administration, Coinbase’s milestone signals a new era for digital assets in the US as well as global markets.