Coinbase Stock Soars After S&P 500 Inclusion – Here’s Why It Matters

Coinbase Stock – Coinbase Makes History: First Crypto Company to Join the S&P 500

Coinbase Stock – Coinbase Global, the San Francisco-based cryptocurrency exchange, will make history next week by becoming the first-ever crypto company to be included in the prestigious S&P 500 index. The inclusion will replace Discover Financial Services in the benchmark index on May 19, a significant achievement for the crypto sector.

This milestone marks a new chapter for the industry, with Coinbase CEO Brian Armstrong expressing his gratitude for the support from both retail and institutional investors. “Crypto is here to stay,” he stated, emphasizing the long-term potential of the industry. Coinbase’s success in securing a spot in the S&P 500 comes after the company reported a profitable last quarter, a critical requirement for index inclusion.

Coinbase’s Stock Surge and Market Response

Coinbase’s stock saw an 11% jump in after-hours trading on May 12, reaching just below $230, as investors responded positively to the news. However, the company has had a tough year so far, with its shares falling 41% since the start of 2025. This decline can be attributed to broader market conditions, including Trump administration trade tariffs that have affected stock markets globally.

Despite this, Coinbase remains optimistic about the future. Armstrong also hinted at plans to expand cryptocurrency access, saying that crypto would soon be part of everyone’s 401(k) pension funds, with the COIN50 index becoming a prominent benchmark in the coming years.

Disappointing Q1 Results and Future Plans

Coinbase’s performance in Q1 2025 was disappointing, as the exchange reported a net income of $65.6 million, down from $1.18 billion in the same period last year. However, the company’s revenue grew by 24%, reaching $2.03 billion, up from $1.64 billion in Q1 2024.

In addition to its inclusion in the S&P 500, Coinbase has also announced plans to acquire Deribit, a Dubai-based crypto derivatives exchange, for $2.9 billion, marking the largest deal in the crypto industry to date.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.