- Coinbase has officially joined the S&P 500, becoming the first crypto company in the index after Discover Financial’s exit opened a spot. Its stock surged over 25%, hitting US$256.
- CEO Brian Armstrong hailed the move as validation that crypto is “here to stay”, while analysts called it a milestone that could encourage more crypto firms to go public.
Coinbase just secured a spot among America’s corporate elite after CEO Brian Armstrong announced the firm will join the S&P 500 index.
According to Armstrong, crypto “is here to stay”:
Coinbase just became the first and only crypto company to join the S&P 500. This milestone represents what the true believers, from retail investors to institutional investors to our employees and partners, knew all along. Crypto is here to stay.
Brian Armstrong, Coinbase CEO.Coinbase’s shares jumped over 25% shortly after, currently priced at US$256 (AU$395).
This only happened because Discover Financial Services (DFS) is out. The legacy lender is being acquired by Capital One, which means its shares will no longer be separately traded. That left the S&P 500 with 499 constituents, and a vacancy that the index committee has now filled with Coinbase.
Related: Bill to Ban US Officials Spruiking Crypto Introduced by US Democratic Senators
Crypto Companies Have a Role in the US Economy
It’s quite a symbolic shift, as crypto companies, like it or not, are now being recognised as legitimate players in the US economy (or at least important enough to be reflected in its most-watched stock index).
Owen Lau, analyst at Oppenheimer, told Reuters that Coinbase’s inclusion sets an example for crypto companies:
It is a watershed moment for Coinbase and the industry. It sets an example for other crypto companies to go public and earn a seat in the S&P 500.
Owen Lau, Oppenheimer analystBut this wasn’t just some random pick. The S&P 500 committee chooses its candidates carefully; companies must report a profit in their most recent quarter and show cumulative profitability across the last four.
Coinbase passed both thresholds and actually brings exposure to a sector not yet represented in the index. Moreover, the committee also aims for sector diversity, meaning its 500 selections collectively reflect the broader US economy.
With crypto markets gaining institutional traction and more US states moving toward digital asset integration, like Arizona and New Hampshire, Coinbase’s inclusion arguably fills a growing gap.
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