Coinbase Global (COIN) surged 24% on Tuesday after S&P Dow Jones Indices announced the cryptocurrency exchange will join the S&P 500 index on May 19, replacing Discover Financial Services ahead of its Capital One merger. The rally marks COIN’s largest single-day gain since its 2024 post-election surge, with shares rebounding to $240 after a months-long slump.
Analysts at Bernstein estimate the inclusion could trigger $16 billion in buying pressure:
- $9 billion from passive funds tracking the S&P 500
- $7 billion from active institutional allocations
Bitcoin climbed 2.4% to $104,000 following the news, extending its weekly gains.
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Coinbase’s Historic Market Milestone
The S&P 500 addition positions Coinbase as the first pure-play crypto company in the benchmark index, with KBW analysts predicting index funds will need to acquire 36 million shares – equivalent to four days’ average trading volume. Short sellers face pressure with 9.9 million shares sold short as of April 30.
| Metric | Value |
|---|---|
| Oppenheimer Price Target | $293 |
| Bernstein Price Target | $310 |
| 30-Day Trading Premium | 71% (WonderFi deal) |
GD Culture’s $300M Crypto Treasury Bet
Nasdaq-listed GD Culture Group unveiled plans to sell $300 million in shares to acquire Bitcoin and TRUMP memecoins, despite reporting a $14.1 million net loss in 2024. The AI firm’s bold move follows similar strategies by Freight Technologies and Metaplanet, though it risks Nasdaq delisting after failing to meet $2.5M equity requirements.
Robinhood’s $179M Canadian Expansion
Robinhood announced its acquisition of WonderFi for $179 million cash, gaining control of Bitbuy and Coinsquare to dominate Canada’s crypto market. The deal – representing a 71% premium to WonderFi’s average price – will integrate 140+ Canadian staff into Robinhood Crypto operations by late 2025.
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The S&P 500 inclusion and M&A frenzy signal growing institutional adoption, with Coinbase’s $2.9B Deribit purchase and Kraken’s $1.5B NinjaTrader deal reshaping market infrastructure. As Bitcoin stabilizes above $100k, analysts watch whether index-driven inflows can sustain crypto’s record bull run.
