Coinbase stocks jump as the company prepares to join the S&P 500

Coinbase Global will become the first ever crypto company to be included in the benchmark index next week.

San Francisco-based Crypto Exchange will replace Discover Financial Services on the S&P 500 on May 19th, according to the release.

“We would like to thank everyone who has made the crypto company available for the first time in history to participate in the S&P 500,” the company said of the X.

As the proverb says…

“The first thing they will ignore you.
Then they laugh at you.
Then they will fight you.
After that, they will add you to your S&P 500. ”

…or something like that.

– Coinbase Surumami§ (@coinbase) May 12, 2025

Coinbase stock jump

The S&P 500 is a coveted index for large companies opening stocks on a wider investor base. It also provides exposure to passive funds that track benchmarks and track aggressively managed funds that may have limited investment locations.

Coinbase, the first major cryptocurrency company to be released in 2021, was able to report previous quarter profits, a requirement for inclusion in the S&P 500.

“This milestone represents something true believers, from retail investors to institutional investors, employees and partners, have known for a long time. Crypto remains here,” said Brian Armstrong, CEO of Coinbase.

He added two more ideas: “Crypto is about to enter everyone’s 401(k)” pension fund, and his goal is to “in the Coin50 index feels just as good as this.”

Two other thoughts:
1. Crypto is about to enter everyone’s 401K
2. My goal is to get into the Coin50 index in 5-10 years and feel as good as this https://t.co/fxfk2tj6g8.

– Brian Armstrong (@brian_armstrong) May 12, 2025

Coinbase shares rose 11% in trading outside of business hours on May 12, just under $230, according to Google Finance.

However, the company’s stocks have been down 41% since the beginning of 2025 as the Trump administration’s trade tariffs tore the stock market.

The S&P 500 rose 3.2% on Monday as it continues to recover from the early April slump, but the index has fallen 37% since the beginning of the year.

Disappointing Q1

Last week, Coinbase reported a disappointing first quarter, citing crypto prices declines along with wider markets due to tariffs and economic uncertainty.

Crypto Exchange reported net profit of $65.6 million, up from $1.18 billion the previous year. However, revenues were up 24% to $2.43 billion, up 24%, from $1.64 billion in the same period a year ago.

Coinbase also announced earlier this month that it plans to purchase Dubai-based Crypto Derivatives Exchange Deribit for $2.9 billion in its largest crypto industry transaction to date.