Coinbase Added to S&P 500 After $100K Bitcoin Surge

Coinbase will join the S&P 500 next week, replacing Discover Financial as Bitcoin continues to trade above $100,000.
Coinbase Added to S&P 500 After $100K Bitcoin Surge
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Key Takeaways

  • Coinbase will join the S&P 500 on May 19, replacing Discover Financial.
  • The announcement follows Bitcoin's surge past $100,000.
  • Coinbase posted $65.6 million in net income and $2.03 billion in revenue last quarter.

Coinbase will be added to the S&P 500 index on May 19, replacing Discover Financial Services, which is being acquired by Capital One.

The announcement sent Coinbase shares up 8% in after-hours trading.

Bitcoin’s impact on Coinbase

The move comes just days after Bitcoin surpassed the $100,000 mark, nearing its all-time high from January.

Coinbase, which went public in 2021, has grown to a $53 billion market cap, despite trading well below its 2021 peak of over $357.

The stock closed Monday at $207.22.

Financial performance and S&P 500 inclusion

Coinbase reported $65.6 million in net income last week, meeting S&P 500 inclusion criteria requiring profitability over the most recent quarter and cumulatively over the past four.

Revenue increased 24% year-over-year to $2.03 billion.

Tech sector dominance in S&P 500

The S&P 500, increasingly dominated by tech companies, continues to absorb firms across the sector.

Last year, companies like Palantir, CrowdStrike, and Super Micro Computer were added.

Stocks often see a price boost upon joining, as index-tracking funds are required to buy shares.

Strategic acquisition of Deribit

Coinbase also revealed a $2.9 billion deal last week to acquire Deribit, a major Dubai-based derivatives exchange.

The acquisition is the largest in the Bitcoin industry to date and expands Coinbase’s reach beyond the U.S.

Year-to-date performance

Despite recent gains, Coinbase shares are down 17% year-to-date.

In comparison, Bitcoin is up roughly 10% over the same period.

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