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Coinbase Soars After S&P 500 Inclusion and Deribit Acquisition

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
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Coinbase Global Inc surges 19.19% as confidence in cryptocurrencies strengthens amidst regulatory clarity and institutional interest.

Key Takeaways

  • Shares of Coinbase climbed 8% to $223.60 after the company announced its inclusion in the respected S&P 500 index, reflecting a growing market confidence in the firm.
  • The acquisition of Deribit, a leading crypto options exchange, for $2.9B aims to strengthen its foothold in the profitable derivatives market, further boosting investor enthusiasm.
  • Barclays adjusted its price target for the company to $202, capitalizing on the Q1 earnings outcomes and recent strategical expansions.
  • The Deribit deal involves $700M in cash and 11M Coinbase Class A shares, a move expected to advance its derivatives platform on a global scale.
  • Despite a slight miss in revenue forecasts, Q1 earnings per share surpassed expectations, delivering positive momentum to the company’s financial outlook.

Candlestick Chart

Live Update At 11:32:14 EST: On Tuesday, May 13, 2025 Coinbase Global Inc stock [NASDAQ: COIN] is trending up by 19.19%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Coinbase recently dazzled the financial world with its Q1 earnings performance, displaying an EPS of $1.94 on a solid revenue of $2B. Although the revenue forecast missed a little, the EPS beat was music to the ears of shareholders. The company’s leverage on the derivatives market, highlighted by its $2.9B Deribit acquisition, is accentuating its strength in the cryptocurrency arena.

More Breaking News

A glance at the stock’s ongoing momentum reveals amazing strides with recent highs ticking upwards to $247.13, whereas previous lows hovered around $231.49. Action in the short term demonstrates some fluctuations, yet the long-term narrative grows stronger with strategic moves like entering the S&P 500, amplifying its market presence and investor confidence.

Impact of Inclusion into S&P 500 and Strategic Moves

Coinbase’s monumental entry into the S&P 500 index represents a significant leap in recognition and credibility. For many investors and financial analysts, the S&P 500 inclusion isn’t just a symbol of success but an endorsement of stability and potential profitability that calls for exuberant celebrations.

With the addition to the index, Coinbase is poised to attract systematic investments as index funds and ETFs align their portfolios to include this digital currency powerhouse. A recent anecdote reminds us of a trader who exclaimed with delight after hearing of the inclusion, validating the significant confidence it instills in such institutional investors.

Simultaneously, the acquisition of Deribit is more than a strategic purchase; it’s a game-changer. The deal which ropes in $700M in cash and 11M shares of its Class A stock fortifies Coinbase’s prominence in the competitive crypto derivatives market. With Deribit’s influence and established network, Coinbase can optimize its derivative offerings and potentially rewrite the rules in the crypto-financial ecosystem.

Barclays’ increased price target reaffirms the firm’s strategic direction and the vibrant prospects lying ahead. The recent earnings report also painted an optimistic picture, nudging analysts to upscale their estimations for the firm.

Conclusion

In summation, recent milestones for Coinbase like the S&P 500 inclusion and the Deribit acquisition are setting the stage for potentially larger market dynamics. Traders are buzzing with optimism as these strategies underscore the company’s commitment to growth and market leadership. All eyes are now on the driving factors that could further propel the Coinbase juggernaut in the dynamic world of cryptocurrency.

As millionaire penny stock trader and teacher Tim Sykes, says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” This mindset is crucial as alignment of market conditions, financial insights, and bold steps define the path ahead for Coinbase. Mixing short narratives with eye-catching strategic marvels, Coinbase continues to captivate traders’ imaginations and market sentiments alike. With the S&P 500 entry and Deribit deal in tow, the future may well be bright for this crypto behemoth.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”