Coinbase (COIN) Shares Jump 10.9% After-Hours on S&P 500 Inclusion

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).

Shares of cryptocurrency exchange Coinbase Global (COIN) were up 10.9% in the after-hours trading session on Thursday after the company announced that it would be joining 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 take effect on May 19, making Coinbase the first-ever crypto and bitcoin company to join the SPX. This move marks a significant milestone for the crypto space, giving the sector more credibility and acceptance within the traditional financial industry.

"We are pleased to welcome Coinbase to the S&P 500 and to highlight the role of M&A activity in driving this portfolio change," said officials of S&P Dow Jones Indices. "Following the merger of Capital One Financial and Discover Financial Services, which will be completed on May 18, 2025, Coinbase will join the S&P 500 effective at the opening of trading on May 19, 2025."

Coinbase is one of the largest players in the crypto space. In addition to providing a platform for individuals and businesses to trade digital assets, Coinbase is also boosting its balance sheet by accumulating Bitcoin (BTC-USD). As tariff turmoil continues, Bitcoin's value has been soaring, surpassing $100,000 last week and nearing the all-time high reached in January. However, COIN stock has slid 16.5% so far in 2025, and the company currently has a market capitalization of $52.78 billion.

SPX Inclusion Is a Big Boon For Coinbase

Companies that are added to the SPX often see their shares surge upon inclusion as it opens the door for 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, which increases demand. To qualify for inclusion, the company must have reported a profit in its most recent quarter and have cumulative profit in the 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.

Highlighting the huge success of joining the SPX, Coinbase took to X to thank 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?

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.