Coinbase Global Inc. saw its stock (COIN) price jump by 24% on Tuesday, marking its largest rally since the day after Donald Trump's election victory. The surge followed the announcement of the exchange's inclusion in the S&P 500, a key benchmark for US stocks.
S&P Global confirmed on Monday that Coinbase will replace Discover Financial Services before trading begins on Monday. This decision reflects Coinbase's growing prominence in the financial sector.
The company's stock is now up approximately 3.5% for the year, trading at around $256.90 after experiencing fluctuations earlier in the year. In February and March, the stock plummeted 26% and 20%, respectively.
Coinbase reported a net income of $65.6 million, or 24 cents per share, a decrease from $1.18 billion a year earlier. However, revenue increased by 24% to $2.03 billion year-over-year. Coinbase also plans to acquire Dubai-based Deribit for $2.9 billion.
Coinbase has solidified its role within the US financial system since going public in 2021. This coincides with Bitcoin price increases and the approval of spot Bitcoin ETFs.
Coinbase and its CEO, Brian Armstrong, have been significant financial backers in the 2024 election cycle. The company contributed over $75 million to a political action committee, while Armstrong personally donated over $1.3 million to candidates.
This article is based on our author's analysis of materials taken from the following resources: TradingView.com and DALL-E.