TLDR
- Coinbase will join the S&P 500 index on May 19, 2025, becoming the first crypto company in the index
- It will replace Discover Financial Services which was acquired by Capital One
- Coinbase shares rose 8.8% to $225.4 in after-hours trading following the announcement
- CEO Brian Armstrong stated “Crypto is here to stay” in response to the news
- The inclusion is seen as a major milestone for both Coinbase and the broader crypto industry
In a watershed moment for the cryptocurrency industry, Coinbase Global (COIN) is set to become the first crypto company to join the prestigious S&P 500 index. The addition will take place on May 19, 2025, when Coinbase replaces Discover Financial Services, which was recently acquired by Capital One Financial Corp.
The news, confirmed by S&P Global on May 12, sparked an immediate market reaction. COIN shares jumped 8.8% to $225.4 in after-hours trading following the announcement. The company finished the trading day up 4%, bringing its market cap to $52.8 billion.
Coinbase’s inclusion represents a pivotal shift in how traditional finance views cryptocurrency. The S&P 500 tracks the performance of 500 of the largest publicly traded companies in the US and serves as a broad measure of the overall US stock market.
This move will likely increase demand for Coinbase stock. Index funds and exchange-traded funds that track the S&P 500 must buy COIN shares to mirror the index, potentially bringing new investors to the company.
From Startup to Financial Heavyweight
Founded in 2012, Coinbase has traveled a long road from fringe technology startup to mainstream financial player. The company went public in 2021 through a direct listing on Nasdaq and has grown into the largest US-based crypto exchange.
Coinbase Chief Financial Officer Alesia Haas described the inclusion as a “major milestone” for both Coinbase and the broader 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,” Haas stated.
CEO Brian Armstrong also weighed in on the historic announcement. On social media, Armstrong kept his message simple but powerful: “Crypto is here to stay.”
The company marked the occasion with humor, posting a twist on a famous quote: “First they ignore you. Then they laugh at you. Then they fight you. Then they add you to the S&P 500… Or something like that.”
Congratulations @Brian_Armstrong on $COIN being added to the S&P 500 Index. A major milestone for Coinbase and for Bitcoin.
— Michael Saylor (@saylor) May 12, 2025
Market Impact and Requirements
The S&P 500 tracked an aggregate market cap of $49.8 trillion as of March 31. It is a market-cap-weighted index, giving more weight to larger firms such as Microsoft, Apple, and Nvidia.
Coinbase will likely be among the bottom 400 companies in the index. These firms are typically weighted between 0.01% and 0.2% of the overall index.
For companies to be included in the S&P 500, they must meet several requirements. They need to be trading on a major US stock exchange like the NYSE or Nasdaq and generate at least half their revenues in the US.
Companies must also have a market cap above $18 billion. Perhaps most importantly, they must have been profitable in the last calendar year and the most recent quarter.
Some crypto-related companies have fallen short of these requirements. Bitcoin-holding firm MicroStrategy was seen as an S&P 500 candidate last year but posted a net loss of $4.2 billion for the first quarter of 2025, making it ineligible for now.
Coinbase joins Tesla and Block Inc. as large corporate Bitcoin holders currently in the index fund. The cryptocurrency exchange’s S&P 500 inclusion sends a clear message that the digital asset economy has moved from the margins to become part of the financial establishment.
The milestone cements a shift in Wall Street’s perception of crypto, with legacy institutions increasingly engaging with blockchain infrastructure, digital custody solutions, and tokenized assets. Coinbase’s S&P 500 debut on May 19 will mark a historic day for cryptocurrency’s integration into mainstream finance.
