Coinbase Stock Jumps After Move to S&P 500 Announced

In brief Coinbase (COIN) shares will be tracked on the S&P 500 index beginning next week. COIN rose on the news, jumping 8% after hours. Shares of Coinbase jumped in after-hours trading after the S&P 500 announced that the cryptocurrency exchange’s stock will begin trading on its index on Monday, May 19. COIN, which trades on the Nasdaq, rose 8% following the news, currently sitting at an after-hours price of $225 per share, as of this writing. The stock already rose nearly 4% during the trading day to finish at $207.22. Coinbase will replace Discover Financial Services (DFS) on the S&P 500, with the index noting that financial services giant Capital One is expected to complete its acquisition of Discover soon. The company is the biggest crypto exchange in the U.S., allowing customers to buy, sell and bet on the future price of a number of digital coins and tokens. Coinbase last week reported that total revenues fell 10% quarter-over-quarter, falling short of analyst expectations in its Q1 earnings. This was mainly due to a decline in trading activity on its platforms, the company said. Earlier that same day, the firm announced it had agreed to buy digital assets options exchange Deribit for $2.9 billion. Even with falling revenue, Coinbase reported a profit for the quarter—which is key, as the S&P 500 only adds companies that were profitable in their latest quarter, as well as across the previous four quarters combined. San Francisco, California-based Coinbase went public in 2021 and has a contract with the U.S. Marshals Service—part of the Department of Justice—to manage and dispose of seized digital assets like Bitcoin. The company also custodies Bitcoin for the crypto ETF products released by top asset managers BlackRock and Fidelity. Edited by Andrew Hayward Editor’s note: This story was updated after publication with additional detail. Daily Debrief Newsletter Start every day with the top news stories right now, plus original features, a podcast, videos and more. Source: https://decrypt.co/319109/coinbase-stock-jumps-sp500-move