Étienne Girard
Coinbase (COIN), the largest cryptocurrency exchange in the United States, is about to make its debut on the S&P 500 index, according to a report from CNBC. The company will take the place of Discover Financial Services in the prestigious benchmark, with the change set to go into effect before markets open on May 19.
Following the announcement, Coinbase stock surged over 8% in after-hours trading, climbing to approximately $226, though still below its all-time high of $343 reached in early December.
Originally going public via a direct listing on Nasdaq in April 2021, Coinbase quickly established itself as the most valuable pure-play crypto company on the stock market. While the firm debuted with a market capitalization near $85 billion, it currently maintains a valuation of roughly $53 billion.
Coinbase’s inclusion in the S&P 500 signals growing institutional acceptance of crypto-focused firms, especially as regulatory sentiment becomes more favorable in the U.S. under the Trump administration.
Earnings Strength Paved the Way for Inclusion
To qualify for the S&P 500, companies must demonstrate positive earnings both in the most recent quarter and across the past four quarters combined. Coinbase has historically struggled with earnings volatility, reflecting the broader crypto market’s fluctuations. For instance, the exchange saw $7.4 billion in revenue in 2021 but reported a $1.1 billion loss in Q2 2022.
However, recent performance has been promising. In Q1 2025, Coinbase posted $527 million in adjusted net income, with total revenue hitting $2 billion. Although this marks a decline from $2.3 billion in Q4 2024, it still reflects a strong recovery trend. Trading volume dropped by 10%, pulling transaction revenue down 19% to $1.2 billion.
Coinbase Expands with Derivatives Play
Earlier this month, Coinbase announced the acquisition of crypto derivatives platform Deribit in a deal worth $2.9 billion. The purchase underscores the company’s commitment to scaling its derivatives trading operations, which globally generate more volume than spot markets, despite Coinbase’s dominance in the U.S. spot exchange space.
Analyst Backing and Industry Momentum
In February, Oppenheimer analyst Owen Lau forecasted that Coinbase might soon be added to the S&P 500, citing five consecutive months of growth. He maintained a “buy” rating and raised his price target to $388.
With favorable regulation encouraging other major platforms like Kraken, Bullish, and Gemini to consider going public, Coinbase’s S&P 500 inclusion may set a precedent for the broader crypto industry.
Other S&P 500 Companies in the Crypto Space
Several other S&P 500 firms such as PayPal, Block, and Visa have already embraced cryptocurrency services. Interestingly, MicroStrategy (MSTR) — which holds billions in Bitcoin — remains excluded from the index due to its relatively smaller market cap.
