Coinbase Stock Rockets 10% as Wall Street Finally Wakes Up to Crypto—S&P 500 Inclusion Imminent

Mainstream finance catches up—a decade late and a dollar short—as Coinbase (COIN) gets the golden ticket to join the S&P 500.

The move signals institutional surrender to crypto’s inevitability, even as traditional bankers still pretend blockchain is a ’fad.’

Funny how a 10% single-day pop concentrates Wall Street’s mind. Suddenly, everyone’s a ’long-term believer.’

Strict Inclusion Rules Demand Positive Earnings Now and Over Prior Year

Investors have rewarded the company with a roughly 260% gain over the past two years despite turbulence across the sector. High-profile scandals and the collapse of major platforms triggered sharp sell-offs, while the stock fell nearly 17% this year even as Bitcoin climbed close to 10%.

In order to qualify for S&P 500 inclusion, companies must report positive earnings in the most recent quarter and cumulatively across the prior four quarters.

Coinbase’s results have been volatile. The firm posted strong revenue of $7.4b in 2021 but swung to a loss of $1.1b dollars in the second quarter of 2022.

In the first quarter of this year, revenue ROSE about 24% compared with the same period last year to $2b, although it slipped about 10% from the fourth quarter. Net income fell 94% to $66m as the exchange marked its crypto holdings to market.

Major Deal Signals Renewed Confidence in Digital-Asset Sector

Meanwhile, Coinbase revealed plans to acquire Deribit for $2.9b, one of the largest deals in the industry’s history. The MOVE comes amid renewed deal-making spurred by returning political support for digital assets.

Under the current administration, regulators have taken a more permissive stance toward crypto firms. Rival platforms such as Bullish, Gemini and Kraken have already signalled plans to pursue public listings in the more favourable climate.