Coinbase Joins S&P 500, Shares Rise 7%

Coinbase Global Inc. will join the S&P 500 index, replacing Discover Financial Services, effective before the market opens on Monday, May 19. This move follows Capital One Financial’s acquisition of Discover Financial, a deal expected to close soon pending final conditions.

Coinbase becomes the first cryptocurrency-focused company to be included in the S&P 500. Following the announcement, Coinbase shares rose more than 7% in after-hours trading. The inclusion comes shortly after Coinbase agreed to acquire crypto derivatives exchange Deribit for $2.9 billion. The deal includes a $700 million cash payment, with the remainder in Class A stock, potentially delaying its finalization.

Despite the milestone, Coinbase’s latest earnings report showed mixed results. In Q1 2025, the company missed revenue expectations by $200 million. However, platform engagement remains strong. USDC balances on Coinbase increased by 49% quarter-over-quarter, signaling resilience among its user base despite financial headwinds.

Coinbase’s addition to the S&P 500 marks a significant moment for the cryptocurrency industry’s growing integration into traditional finance. This inclusion is a testament to the increasing acceptance and legitimacy of cryptocurrencies within the broader financial ecosystem.