Coinbase shares spike as crypto exchange set to join S&P 500, replacing Discover Financial

Brian Armstrong, CEO of Coinbase, speaking on CNBC's Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 21st, 2025. Coinbase is joining the S&P 500, replacing Discover Financial Services in the benchmark index, according to a release on Monday. Shares of the crypto exchange jumped 8% in extended trading. The change will take effect before trading on May 19. Discover is in the process of being acquired by Capital One Financial. Since going public through a direct listing in 2021, Coinbase has become a bigger part of the U.S. financial system, with bitcoin soaring in value and large institutions gaining regulatory approval to create spot bitcoin exchange-traded funds. However, Coinbase has been a particularly volatile stock and is trading well below its peak from late 2021. The shares closed on Monday at $207.22, giving the company a market cap of $53 billion. At its high, the stock traded at over $357. Stocks added to the S&P 500 often rise in value because f ... Read full article.