Coinbase Journey: From Ignored to S&P 500 Inclusion

This article does not offer investment advice, and the author has no holdings in any mentioned stocks.

Coinbase Makes History with S&P 500 Inclusion

In a landmark achievement that Michael Saylor of MicroStrategy has heralded as a “major milestone, ”Coinbase has successfully qualified for inclusion in the esteemed S&P 500 index. This significant announcement came from S&P, confirming that Coinbase will take the place of Discover Financial Services, with this change set to take effect prior to the market opening on Monday, May 19.

As the saying goes…

“First they ignore you. Then they laugh at you. Then they fight you. Then they add you to the S&P 500.”

…or something like that.

— Coinbase 🛡️ (@coinbase) May 12, 2025

A Historic Moment for Crypto Companies

Coinbase’s inclusion in the S&P 500 marks a first for any cryptocurrency-focused firm, underscoring the growing acceptance of digital assets within mainstream finance. The company cheekily celebrated this achievement via a notable post on social media, signaling a significant turnaround from its earlier battles with regulatory scrutiny under the Biden administration’s “regulation by enforcement”approach, particularly in its high-profile contest with Ripple against the SEC.

Q2 is likely going to be the big blow out quarter on Earnings for $MSTR

The quarter ends on 6/30 (52 days from now)

The earnings release call will likely be on August 5th / 6th

The market will react surprised & bewildered…

— Jeff Walton (@PunterJeff) May 9, 2025

MicroStrategy on the Cusp of Inclusion

With Coinbase now inducted into the S&P 500, attention turns to MicroStrategy, which may not be far behind. As of early May, the company reported a staggering $5.8 billion gain this fiscal year attributed to its substantial Bitcoin holdings of 568, 840 BTC, bought at an average price of $69, 287.

This development is particularly crucial, as MicroStrategy’s actions significantly influence Bitcoin’s market dynamics. The anticipated inclusion of MicroStrategy in the index could trigger a bullish trend for Bitcoin, known for its volatility. Currently, Bitcoin miners are producing around 450 BTC daily, but MicroStrategy is actively removing 2, 087 BTC from circulation each day. This strategic maneuver has contributed to Bitcoin becoming a deflationary asset, now reflecting an annual inflation rate of approximately -2.33%.

Market Reactions and Current Performance

In the wake of these announcements, Coinbase has witnessed an upward movement, rising about 10% during after-hours trading, even though the stock is down 20% year-to-date. This mixed performance indicates a turbulent yet promising future for cryptocurrency-related stocks in traditional markets.

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