Crypto exchange Coinbase is set to join the S&P 500 index, taking the place of Discover Financial Services, which is being acquired by Capital One Financial, per an announcement Monday. The news propelled Coinbase shares up 8% in after-hours trading. The adjustment to the benchmark index will become effective at the start of trading on May 19.
Since its 2021 public debut via a direct listing, Coinbase has grown into a significant player in the U.S. financial landscape, buoyed by bitcoin’s surging value and regulatory approvals enabling major institutions to launch spot bitcoin ETFs. Last week, bitcoin briefly surpassed $100,000, approaching its all-time high set earlier this year.
Despite its market influence, Coinbase shares remain highly volatile and far below their 2021 peak. The stock closed Monday at $207.22, valuing the company at $53 billion—down from its late-2021 high above $357 per share.
Inclusion in the S&P 500 typically drives stock gains as index-tracking funds adjust holdings to mirror the benchmark. The index, dominated by tech giants due to their outsized market values, has increasingly incorporated firms from the sector. Recent additions include Dell, Palantir, Super Micro Computer, and CrowdStrike.
To qualify for the S&P 500, companies must post profits in their latest quarter and maintain positive earnings over the prior year. Coinbase reported net income of $65.6 million (24 cents per share) for its most recent quarter, a steep decline from $1.18 billion ($4.40 per share) a year earlier, after adjusting for crypto asset valuations. Revenue, however, climbed 24% to $2.03 billion.
Separately, Coinbase revealed plans to acquire Dubai’s Deribit, a leading crypto derivatives platform, for $2.9 billion—the largest deal in crypto industry history. The move aims to bolster its international presence.
Year-to-date, Coinbase shares have dropped 17%, underperforming bitcoin’s 10% gain over the same period.
