Coinbase, the largest cryptocurrency exchange in the United States, will join the S&P 500 on May 19, replacing Discover Financial Services, which merged with Capital One. Brian Armstrong made a key statement ahead of this development, suggesting plans for further acquisitions.
“Stay here”
Coinbase CEO Brian Armstrong Express Passionate about inclusion said: “We are excited to be included in the S&P 500. This means that cryptocurrencies will stay here.”
Coinbase’s entry into the S&P 500 is particularly noteworthy because it indicates a change in perceptions of digital assets in the financial sector. Armstrong notes that joining may affect Retirement fundsnoting that cryptocurrencies will soon become part of everyone’s 401(k) plan.
This is crucial because many retirement accounts track the S&P 500, which means millions of Americans may indirectly invest in Coinbase through retirement savings.
Analysts predict that such inclusion could lead to large capital inflows, with Bernstein’s estimate of new investment up to $16 billion, which is largely driven by passive index funds. Oppenheimer also proposed Price target The coins range from $269 to $293 reflects optimism about the company’s future.
Coinbase actively seeks merger opportunities
Following the recent $2.9 billion acquisition of Deribit, Armstrong said Coinbase is actively exploring more mergers and acquisitions.
“We’re always looking for opportunities for mergers and acquisitions,” he said. interview On Bloomberg TV. This strategy is in line with Coinbase’s goal of expanding its market operations and enhancing its service offerings in a rapidly growing crypto landscape.
Deribit, known for his dominance in Bitcoin options trading, will strengthen Coinbase’s position as a leader in crypto derivatives. The acquisition is by far the largest in the industry and is expected to end by the end of the year, further strengthening Coinbase’s international presence.
The company has shown solid growth since its public listing in 2021, driven by growing drivers of cryptocurrencies and regulatory approvals, with major institutions launching spot bitcoin Exchange-traded funds (ETF).
In its latest earnings report, the company exceeded earnings expectations, reporting earnings per share of $1.94, reflecting a year-on-year increase of 7.6%. However, revenue rose 24% to $2 billion in revenue, slightly analysts predicted. Despite these results, Coinbase’s strategic initiatives and market positioning show promising prospects.
Shares of the exchange closed at $263.41 on Wednesday, up nearly 7% from the past 24 hours. Recent Deribit trading has sparked significant momentum, with the stock rising from a low of $143 a year that it reached last April.
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