Coinbase Stock Soars Over 10% on Imminent S&P 500 Debut

Coinbase Officially Joins the S&P 500, Marking a Historic Milestone for the Crypto Industry

On May 19, 2025, Coinbase (NASDAQ: COIN) will officially join the S&P 500 Index, replacing Discover Financial Services — the company currently being acquired by Capital One. This marks the first time a cryptocurrency exchange has been added to the most prestigious stock index in the United States, signaling a major turning point for the digital asset industry.
— Investor’s Business Daily

🚀 COIN Stock Surges on the News

Following the announcement from S&P Dow Jones Indices, Coinbase shares soared over 8% in after-hours trading, reaching $225.4. Earlier in the day, the stock had already risen nearly 4% during regular trading, pushing Coinbase’s market cap to approximately $52.8 billion.
— Cointelegraph

Joining the S&P 500 will expose COIN to hundreds of passive funds and ETFs, significantly boosting liquidity and institutional visibility.

📈 Strict Requirements for S&P 500 Inclusion

To qualify for the S&P 500, a company must meet several tough criteria:

Positive net income in the most recent quarter
Cumulative positive earnings over the past four quarters
A minimum market capitalization of $18 billion
A majority of revenue from the U.S. market

Despite the crypto sector’s volatility, Coinbase met all the requirements. In Q1 2025, the exchange reported $2 billion in revenue, a 24% increase year-over-year (YoY), though down 10% from the previous quarter. Net income dropped 94% to $66 million, largely due to mark-to-market revaluation of its crypto holdings.

💼 $2.9 Billion Acquisition of Deribit

Coinbase also announced plans to acquire Deribit — the world’s largest crypto options exchange — for $2.9 billion, including $700 million in cash and 11 million COIN shares.
— Investor’s Business Daily, BankingDive, Coinbase

Deribit commands approximately 85% of the global Bitcoin and Ethereum options market, with a staggering $1.2 trillion in trading volume in 2024. This acquisition allows Coinbase to expand aggressively into crypto derivatives, a sector increasingly favored by institutional investors.

🧠 Strategic Significance

Coinbase’s entry into the S&P 500 is not just a company milestone — it reflects the growing legitimacy of the crypto industry within traditional finance. Meanwhile, the Deribit deal showcases Coinbase’s commitment to diversifying its services to meet rising demand from professional traders.