Shares of Coinbase Global (NASDAQ: COIN) jumped 9% in pre-market trading on Tuesday after news broke that the cryptocurrency exchange is set to join the S&P 500 index.
The company acknowledged the milestone in a post on X, formerly Twitter, saying,
“Thank you to everyone who made it possible for a crypto company to join the S&P 500 for the first time in history.”
According to S&P Dow Jones Indices, Coinbase will officially replace Discover Financial Services (NYSE: DFS) in the benchmark index before the market opens on Monday, May 19, 2025.
Discover is exiting the index ahead of its merger with Capital One Financial (NYSE: COF). The merger, which received regulatory approval in April, will consolidate the two financial institutions and prompt an index reshuffle.
Coinbase’s addition to the S&P 500 marks a significant moment for the crypto industry, signaling growing mainstream acceptance of digital asset platforms.
Alongside the S&P 500 announcement, Compass Point, in a note published on Monday, upgraded Coinbase from a “Sell” to a “Neutral” rating, citing the “growing potential of a mini ‘Alt Season’ this summer,” which could reignite retail trading interest and improve the company’s earnings outlook.
The firm observed that trading trends in April and May suggest Coinbase is on track to generate around $1 billion in annualized EBITDA. Analysts also pointed to early signs of a retail trading resurgence, driven by rising altcoin prices (a trend that has historically boosted stronger user engagement and transaction volumes on the platform).
They added that Coinbase’s fundamentals appear to have “decoupled from BTC prices,” with Bitcoin up 10% year-to-date while Coinbase stock has declined by 20%.
The firm wrote,
“We believe COIN’s fundamentals are driven by Altcoin prices, which influence retail trading and USDC supply.”
Compass Point also emphasized that retail trading and USDC/interest income remain Coinbase’s core profit drivers, while other revenue streams, such as institutional trading and blockchain rewards, contribute less and yield lower margins.
In contrast, H.C. Wainwright analyst Mike Colonnese lowered his price target for Coinbase to $305.00 from $350.00, though he maintained a “Buy” rating on the stock.
As of the latest update, Coinbase (NASDAQ: COIN) shares are up 9.01%, trading at $225.90.
Mary Lee is a freelance writer and journalist based in Toronto, Canada. She holds an M.S. degree in business and economic journalism from Columbia University’s Graduate School of Journalism in New York and a certificate in digital marketing from the University of Toronto. Read Full Bio
