Shares of cryptocurrency exchange Coinbase Global (COIN) jumped 10.9% in after-hours trading yesterday, on the announcement that the company will join the S&P 500 index (SPX). Coinbase is replacing credit card company Discover Financial Services (DFS), following its $35.3 billion acquisition by Capital One Financial (COF). The change will be effective on May 19, making Coinbase the first ever crypto and bitcoin company to join the SPX. The move marks a significant milestone for the crypto space, giving the sector more credibility and acceptance in the traditional financial industry.
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Coinbase is one of the largest players in the crypto space. Beyond serving as a platform for individuals and businesses to trade digital assets, Coinbase is also bolstering its balance sheet by accumulating Bitcoin (BTC-USD). Amid the ongoing tariff turmoil, Bitcoin’s value has been surging, blowing past $100,000 last week and approaching its all-time high reached in January. Notably, COIN stock has lost 16.5% so far in 2025, and the company has a current market capitalization of $52.78 billion.
SPX Inclusion Is a Big Boon for Coinbase
Companies added to the SPX often see their shares surge upon inclusion, as it opens doors to a broader investor base. Both active and passive funds that track the S&P 500 index are required to add these companies to their portfolios, thus increasing demand. To qualify for inclusion, the company must have reported a profit in its most recent quarter and have cumulative profit in the trailing twelve months.
In its Q1FY25 results, COIN reported a net profit of $0.24 per share on revenues of $2.03 billion. The company also reported Net gains on crypto assets held for investment (fair value) of $596.65 million. Commenting on the huge success of joining the SPX, Coinbase wrote in a social media post on X, “Thank you to everyone who made it possible for a crypto company to join the S&P 500 for the first time in history.”
Is COIN Stock a Buy Now?
Wall Street remains divided on Coinbase’s long-term stock trajectory. On TipRanks, COIN stock has a Moderate Buy consensus rating based on 11 Buys and 12 Hold ratings. Also, the average Coinbase Global price target of $255.10 implies 23.1% upside potential from current levels.
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