Coinbase Becomes First Crypto Company To Join S&P 500, COIN Stock Jumps

Coinbase is again in the news following a recent announcement that the top crypto exchange will be joining the S&P 500. This development marks a huge milestone for the exchange, as it will become the first crypto company to achieve this feat. Meanwhile, the COIN stock price has jumped on the back of this development.

Coinbase To Replace Discover Financial In S&P 500

In a press release, the S&P Dow Jones Indices announced that Coinbase Global will replace Discover Financial in the S&P 500, effective before the opening of trading on Monday, May 19. The exchange is replacing Discover as Capital One Financial is acquiring the financial institution. The crypto exchange will trade under the ticker ‘COIN,’ in a move that will provide further exposure for the company and attract more investors.

Nasdaq data shows Coinbase’s stock surged 8% following the S&P 500 announcement. The COIN stock price is currently trading at around $224, up over 17% in the last month. However, the stock is still down over 16% year-to-date.

This announcement comes just days after the crypto exchange announced an agreement to acquire crypto options firm Deribit for $2.9 billion, making it the largest merger and acquisition in crypto history. Following the announcement, Bitwise CIO Matt Hougan predicted that the exchange could one day become a trillion-dollar company.

Strategy founder and Bitcoin maximalist Michael Saylor congratulated Coinbase and its CEO Brian Armstrong, stating that it is a major milestone for the exchange and Bitcoin.

The top crypto exchange has released a statement on its X account following the announcement. The X post read,

Thank you to everyone who made it possible for a crypto company to join the S&P 500 for the first time in history.

Exchanges’ Execs React To The Announcement

In an X post, Brian Armstrong commented on the feat, remarking that his exchange just became the first and only crypto company to join the S&P 500. He added that this milestone represents what the true believers, both retail and institutional investors, and employees and partners knew all along, that crypto is here to stay.

Emilie Choi, the COO of the top crypto exchange, also stated that this development is a “big deal.” She remarked that the S&P 500 is arguably the most tracked and influential index in the world and a magnet for institutional capital. Choi added that it is a great day for Coinbase, its customers, employees, and retail and institutional investors.