Coinbase Jumps 8% as It Joins S&P 500 — A Historic First for Crypto
In a major milestone for the cryptocurrency industry, Coinbase (COIN) has been confirmed to join the S&P 500, making it the first dedicated crypto company to enter the prestigious stock market index. The news sent Coinbase shares up by 8% in aftermarket trading, showing strong investor confidence.
CNBC reported that Coinbase will replace Discover Financial Services in the index. Trading under its new status will begin on May 19, 2025 . This move is not just symbolic — it reflects how seriously crypto companies are now being treated by traditional financial markets.
Why This Matters for the Crypto Industry
To qualify for inclusion in the S&P 500, a company must show consistent profitability over several quarters. For a crypto business like Coinbase, this was no small feat due to the sector’s volatility.
However, Coinbase reported $527 million in adjusted net income for Q1 2025. While revenue dipped slightly from $2.3 billion in Q4 2024 to $2 billion, the company still managed to stay profitable — an important signal for investors and regulators alike.
This achievement also comes at a time when the U.S. regulatory environment for crypto has become more favorable. Under the Trump administration, firms like Bullish, Gemini, and Kraken have all signaled plans to go public, suggesting a broader shift in how digital assets are viewed.
A Long Road to Institutional Recognition
Since going public via a direct listing on Nasdaq in April 2021, Coinbase has grown into the largest publicly traded crypto exchange in the U.S., with a current market cap of around $53 billion — though it peaked at $85 billion during its early days.
Back in February 2025, Oppenheimer analyst Owen Lau predicted that Coinbase could soon join the S&P 500. He maintained his “buy” rating and raised his price target to $388, citing five consecutive months of growth and improving fundamentals.
Still, the road hasn’t always been smooth. In Q2 2022 , Coinbase posted a $1.1 billion loss amid a bear market. But the company has since adapted, cutting costs and expanding into higher-margin services like staking and derivatives.
Expansion Through Acquisition
Earlier this month, Coinbase agreed to acquire Deribit , one of the world’s top crypto derivatives exchanges, in a $2.9 billion deal . This acquisition gives Coinbase a stronger foothold in the derivatives market, which accounts for a large share of global crypto trading volume.
While Coinbase already dominates spot trading in the U.S., adding Deribit helps diversify its offerings and compete more directly with global giants like Binance and OKX.
How Does Coinbase Compare to Other Crypto-Friendly Firms in the S&P 500?
Although Coinbase is the first pure-play crypto firm to join the S&P 500, other companies in the index offer crypto-related services. These include Block (formerly Square), PayPal, and Visa , which have integrated crypto payments into their platforms.
Meanwhile, MicroStrategy (MSTR) , a major Bitcoin holder, remains outside the index despite holding billions in BTC. Analysts say this is mainly due to its smaller market cap compared to other S&P 500 firms.
What’s Next for Coinbase and the Crypto Market?
With Coinbase now joining the S&P 500, the line between traditional finance and crypto continues to blur. Investors who previously avoided crypto may now gain exposure indirectly through index funds that include COIN.
This development also sets a precedent for other crypto-native firms looking to go public or gain broader recognition. As regulatory clarity improves and user adoption grows, more blockchain-based companies could follow Coinbase’s path.
Conclusion
Coinbase hitting $40B+ in market cap and entering the S&P 500 marks a turning point for the crypto industry. It proves that a crypto-first company can meet the strict standards of traditional finance and earn a place among America’s top businesses.
As the space matures, Coinbase’s success shows that crypto is not just a trend — it’s becoming part of the mainstream financial system.
