It’s a big week for the whole cryptocurrency community. Coinbase has been included in the S&P 500. The leading crypto company, with a market cap of $65.4 billion, was added to the leading U.S. index and will go live next week.
In a press release on Monday, the S&P Dow Jones Indices, a Division of S&P Global, shared how “Coinbase Global Inc. will replace Discover Financial Services in the S&P 500 effective prior to the opening of trading on Monday, May 19.”
Coinbase stock surged on the news. The share price rose from $207 to $241 within 24 hours on the announcement. Today it is trading at almost $257 as market sentiment continues to be positive.
How Does a Company Join the S&P 500?
According to the S&P website, there are strict criteria that companies need to meet to join the S&P 500. They are explained in a document describing the methodology. The main criteria include:
- Must be a U.S.-domiciled company
- Must be listed on a U.S. exchange like Nasdaq, Cboe, or NYSE
- Must have a market cap of $20.5 billion or more
- Must have at least 50 percent of shares publicly available
- Must have profitable net income from the last quarter and cumulative profit over the prior four quarters
Coinbase meets all the requirements as listed above. It made profit in 2024 as well. Alesia Haas, Chief Financial Officer, at Coinbase wrote about the news on the company’s website:
“This is a major milestone, not just for Coinbase, but also for the entire crypto industry. Joining this prestigious index reflects how far Coinbase and the industry have come and is a signal of where the world is heading.”
The Crypto Industry Recognized
It was hard not to foresee the role of crypto during Trump’s second term. As early as January 23 the writing has been on the wall when the first Presidential Executive order was issued titled “Strengthening American Leadership in Digital Financial Technology.”
Biran Armstrong, cofounder and CEO of Coinbase said in March that “President Trump has breathed life back into the crypto industry.” He also added at the time how the company was looking to hire about 1,000 people in the U.S. because of Trump’s pro-crypto stance.
Add to this the exciting news from last week about Coinbase acquiring Deribit. Coinbase wrote that the price for the leading crypto options exchange was approximately $2.9 billion.
“This isn’t just another addition,” Coinbase’s press release reads. “It’s foundational to our vision of creating the most comprehensive, compliant, and user-friendly derivatives platform globally. We’re excited about the path ahead and look forward to welcoming Deribit into the Coinbase family as we shape the future of crypto markets together.”
The next stop for Coinbase must surely be its addition to the Dow Jones. More about that another day.
Author: Andy Samu
#S&P500 #Coinbase #Crypto
Data comes from leading trading platform TradingView.
See Also:
George Osborne Joins Coinbase Global Advisory Council | Disruption Banking
Fed Clears Path for Bank Crypto and Token Innovation | Disruption Banking
