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Coinbase will join the S&P 500 index before the market opens on May 19. Coinbase will replace Discover Financial Services (DFS) as part of the Capital One merger with DFS.
This listing marks a major development for Coinbase, which which debuted on the Nasdaq in 2021. Coinbase has been increasingly straddling the traditional financial world since then — particularly as institutions and traditional finance express interest in the crypto space.
Coinbase at the time of the direct listing had a market capitalization of $52.78 billion, with shares closing Monday at $207.22. The stock is well below its 2021 peak, when it traded above $357.
The S&P 500 is composed of large-cap tech companies, but the index also features stocks from other parts of the tech world. In the past year, companies including Dell, Palantir, Super Micro Computer, and CrowdStrike were added to the index.
To be eligible for inclusion in the S&P 500, a company must report a profit in its most recent quarter and rack up total profits over the previous four quarters.
Coinbase has already met all of the criteria, reports CNBC. The company reported a profit of $65.6 million last quarter — but that’s way down from the $1.18 billion it made a year ago. Its revenue has still increased about 24% year-over-year to $2.03 billion.