Coinbase is set to officially join the S&P 500 index on May 19, becoming the first cryptocurrency-focused company to secure a spot in the prestigious benchmark. The announcement by S&P Global on May 12 revealed that Coinbase will replace Discover Financial Services, which Capital One is currently acquiring.
Following this news, shares of Coinbase (COIN) surged 8.8% in after-hours trading, according to data from Google Finance.
Founded in 2012, Coinbase is the largest U.S.-based cryptocurrency exchange publicly listed on the Nasdaq since 2021. Despite ongoing challenges in the broader crypto market, the firm recently reported a net income of $65.6 million for the first quarter, signalling a return to profitability after a volatile year.
This return to financial stability has enabled Coinbase to meet one of the key criteria for inclusion in the S&P 500 sustained profitability. Alongside its earnings, the company also posted a 24% year-over-year revenue increase, bringing in $2.03 billion, further solidifying its financial foundation.
CEO Brian Armstrong took to X, marking the occasion, declaring, “Crypto is here to stay.” In a follow-up post, the company echoed this sentiment: “First they ignore you. Then they laugh at you.Then they fight you. Then they add you to the S&P 500…”
Joining the S&P 500 significantly boosts a company’s exposure, as funds that track the index are required to purchase its stock. This typically results in heightened demand and liquidity for the shares.
Although Coinbase is expected to enter the lower tier of the index with a weighting between 0.01% and 0.2%, the inclusion is a pivotal moment for the digital asset sector.
In a strategic push to expand its global presence further, Coinbase also announced its largest acquisition to date: purchasing the crypto options platform Deribit. This deal is poised to integrate spot, futures, and options trading under one unified platform, reinforcing Coinbase’s ambitions to dominate the crypto derivatives space.
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