Coinbase to Join S&P 500 on May 19 as First Crypto Firm

Highlights:

• Coinbase is set to join the stock market index that tracks the stock performance of 500 leading companies listed on stock exchanges in the United States.
• The company surpassed Strategy, which was to list on the index first before reporting losses.
• The company met all listing rules by staying profitable and trading on a major exchange with strong US revenue.

Coinbase Global will join the S&P 500 index before markets open on May 19. S&P Dow Jones Indices confirmed this update on May 12. The crypto exchange will replace Discover Financial Services, which Capital One is acquiring. This makes Coinbase the first company that is focused on virtual assets to enter the index.

🚀 HISTORIC MOVE: Coinbase Joins S&P 500 on May 19!

First Crypto Firm: Coinbase (COIN) replaces Discover Financial in the S&P 500, marking a major milestone for crypto adoption.

Market Impact: Inclusion means index funds/ETFs tracking S&P 500 must buy COIN shares, boosting…

— Bitcoin Weirdo (@Bitcoin_Weirdo) May 13, 2025

The index tracks 500 large U.S. public companies and reflects a wide view of the overall stock market. Coinbase will now be part of this group, joining major firms like Apple, Microsoft, and Nvidia. The index uses market capitalization to assign weights. Coinbase will likely rank among the bottom 400 firms, which usually carry a weight of 0.01% to 0.2%.

Many funds and ETFs that track the index will now include Coinbase shares. This change could increase demand for its stock on the Nasdaq exchange.

Stock Price Rises and Company Eligibility

After the announcement, Coinbase shares rose 7.9% in after-hours trading, reaching $229. Earlier that day, the stock gained 3.96%, pushing its market value to $52.8 billion. The S&P 500 requires companies to meet several standards before joining. They must be listed on a major U.S. exchange and have a market value above $18 billion. At least half of their revenue must come from the U.S.

Most importantly, a company must post profits in the most recent quarter and also in the previous year. Coinbase fulfilled all of these conditions. The firm made profits despite revenue dropping 10% compared to Q4 of last year. The revenue decline came mainly from lower trading activity. Another crypto company, Strategy, was considered for inclusion in the past. However, the Saylor-led company reported losses in Q1 of this year. That loss made it ineligible under the index’s profit rules. Strategy meets other entry conditions but cannot join until it becomes profitable again.

Crypto Community Reacts to the Update

Coinbase also made news days earlier by announcing a $2.9 billion agreement to acquire Deribit. This crypto options exchange will become part of Coinbase once the deal is complete. The agreement stands as one of the biggest mergers in the digital asset space. The deal is expected to close before the end of this year.

Several leaders in the crypto sector responded to the development. Coinbase CEO Brian Armstrong, in a post on X, stated, “Coinbase just became the first and only crypto company to join the S&P 500. This milestone represents what the true believers, from retail investors to institutional investors to our employees and partners, knew all along. Crypto is here to stay.”

Coinbase just became the first and only crypto company to join the S&P 500.

This milestone represents what the true believers, from retail investors to institutional investors to our employees and partners, knew all along.

Crypto is here to stay. https://t.co/MnMRCX8pMg

— Brian Armstrong (@brian_armstrong) May 12, 2025

Coinbase COO Emilie Choi called the move important. She mentioned that the index is still one of the most watched indexes in the world. She also said that the listing is good news for the staff and investors of the company. Michael Saylor, the executive chairman of Strategy, congratulated the CEO of Coinbase, stating that this was one big step forward.

Congratulations @Brian_Armstrong on $COIN being added to the S&P 500 Index. A major milestone for Coinbase and for Bitcoin.

— Michael Saylor (@saylor) May 12, 2025

Coinbase also manages virtual assets for the U.S. Marshals Service. Additionally, it serves as custodian for Bitcoin ETFs from top investment firms like BlackRock and Fidelity.