Coinbase’s very first “crypto” company is added to the S&P 500
Coinbase (Nasdaq: Coins) has become the very first crypto company added to the S&P 500 (Nasdaq: SPX). The company is officially expected to be included in the index before the trade opens on Monday, May 19 and replaces Discover Financial Services (Nasdaq: DFS), which will be acquired by Capital One Financial Corp. (Nasdaq: Cof).
Brian Armstrong shared the news, And the markets reacted quickly. Coinbase Stock ($ coin) jumped almost 20% after the announcement. This is mainly due to the fact that index tracking funds are required to buy shares in companies that are added to the index, regardless of price, which often drives a short -term peak demand and then a price increase.
Without a doubt, this is a significant milestone for crypto. This is the first time a crypto-in-born company has been given a place in the S&P 500. But I don’t know about Coin baseInclusion should be celebrated based on how people treat it. It reminds me a lot When Coinbase became public Back in 2021. On its first day of trade, it popped 36% and hit a height of $ 342 per share. But since then, it has only topped the IPO on two trading days during its four years of public trade. There was hype directly outside the gate, but the long -term price measure was not sustainable. My concern is that this S&P 500 inclusion can be a similar story.
I am worried that this event may be the tip of the current enthusiasm in crypto markets; A top signal, in the same way as Coinbase’s stock exchange listing was 2021. Short -term profits are large, but they do not always point to long -term strength. Sometimes they are a sign that the best is already behind us.
Coinbase suffers from major data violations
Unfortunately for Coinbase, the S&P 500 News was not the only headline from the company this week.
On May 14 Coinbase revealed That it had been the target of a cyber attack that compromised a significant amount of user data. The attacker reportedly used social technology to gain access to internal systems, including the company’s customer support backend, by targeting international employees and contractors.
The range of the infringement indicates that the hacker could be named, e -mail addresses, physical addresses, telephone numbers, the last four digits with social security numbers, obfusade bank information, pictures of Government -published IDBalance Snapshots, transaction history and internal company documents were all exposed. In some cases, the attacker even contacted the victims after the violation to try to blackmail more moneythat seems to have been successful in some cases.
The hacker then demanded a $ 20 billion from Coinbase and threatened to leak the stolen information in public, but Coinbase refused. Instead, the company is offer A $ 20 million reward for all information that leads to the arrest and conviction of the individuals behind the attack.
According to Coinbase, less than 1% were affected by its monthly transactions. But when you are one of the largest
exchange In the world, 1% are still many people. The estimated cost of dealing with the violation is between $ 180 million and $ 400 million, mainly because of the voluntary repayments that Coinbase says it plans to issue to the users concerned.
Hackar happens in each industry, and there is no such thing as a 100% safe system. But this one comes right when Coinbase is introduced in the S&P 500, which without a doubt makes it bad timing. Crypto is already suffering from a perception problem, and this does not help. Although this does not significantly affect Coinbase’s business, it is another reminder of the unique risks surrounding the crypto gym. It is likely to have some potential investors hesitate to buy shares in Coinbase or participate in the crypto gym.
Trump Family’s Bitcoin Mining Company gets public
The Trump family announced That its latest crypto company – American Bitcoin – will publish via a merger with Gryphon Digital Mining, Inc. (NASDAQ: GRYP).
American Bitcoin was launched in March 2025, and now it is expected to be public before the end of the year. This type of speed-from the launch to public listing of under 12 months-will make it one of the fastest GO public crypto agreements of all time.
The merger is a 100% stock-by-layer transaction and it is expected to close already in Q3 2025.
From a business perspective, the move is meaningful. BTC mine is capital intensive. The best chance to stay competitive is to reinvest in the latest mining rigs, coolant and energy optimization. Running a mining operation is much like running a high-driven data center-in addition to your margins is entirely at mercy with Bitcoin’s price.
Right now, these margins are back in the green. With BTC trading Over $ 100,000 again, miners are finally capturing a break. But a Recent report Estimated that it costs about $ 80,000 to break a single BTC, which means that even the most advanced operations were to cut it close a few months ago, and many more worked with loss.
The Trump connection adds a layer of complexity to the deal. With Trump’s hands in several crypto-related companies, including this mining company and a reported StableCoin Initiative Via World Liberty FinancialThe Democrats are starting to arouse interest conflict that undoubtedly slows down the rate that innovation can take place in the industry. They claim that in anticipation of legislation that benefits the crypto industry, As genius actcould unfairly benefit the president’s personal business. As a result, several bills now have once had two -party support now for delays or direct opposition due to growing review.
Look: Break solutions on blockchain control barriers
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