Coinbase (NASDAQ:COIN) will be added to the S&P 500 index, replacing Discover Financial (NYSE:DFS), an established financial services firm.
Shares of Coinbase closed up over 24%, rocketing higher by 50 points to top $257 a share—a dramatic increase.
While Coinbase is a relatively new addition to the Nasdaq, listing in 2021, Discover listed in 2007 as part of a spin-off from Morgan Stanley.
Coinbase founder and CEO Brain Armstrong welcomed the inclusion in the index noting that it was the first and only crypto firm to be included in the benchmark, alluded to his expectation that in the coming years there will be a new index, one he called the COIN50 index.
Two other thoughts:
1. Crypto is about to be in everyone’s 401k
2. My goal is that in 5-10 years, getting into COIN50 index will feel as good as this https://t.co/fXfk2tJ6g8— Brian Armstrong (@brian_armstrong) May 12, 2025
During Coinbase’s Q1 earnings report, the company reported $2 billion in revenue and $66 million in net income. Much of the revenue was driven by trading, but subscriptions and other services added $700 million to the top line.
Discover reported $4.25 billion in revenue and a net income of $1.1 billion during the same quarter.
While at first glance, Discover is performing better, it is all about growth. As Coinbase builds the financial system of the future, Discover is anchored in its credit card roots. The $35.3 billion merger with Capital One, expected to close next week, means that Discover will kind of remain in the index, but this also highlights the changing dynamics in the financial services sector. As Coinbase adds new services beyond crypto trading and expands into new markets, Discover will be hoovered up by the competition, emerging as a larger credit card player and ending its run on the NYSE.