Coinbase surges on S&P 500 debut, but cyber attack dampens share gains

Coinbase surges on S&P 500 debut, but cyber attack dampens share gains
Crypto exchange will replace Discover Financial Services in the index
By HARVEY DORSET
Updated: 17:19 BST, 15 May 2025
Coinbase saw its largest share price spike since Donald Trump's election win on Tuesday, after S&P Global announced that the firm would be bumped up to the S&P 500 before trading next week.
Coinbase is set to replace Discover Financial Services in the market-capitalisation-weighted US index that tracks the nation's 500 leading public companies.
Shares in the crypto exchange skyrocketed 24 per cent on Tuesday following the announcement, just shy of its 31 per cent boom following Donald Trump's election in November.
However, Coinbase shares were rocked on Thursday, falling more than five per cent as the firm revealed it was the victim of a cyber-attack.
The firm said it expects a hit of between $180million and $400million as result of the cyber-attack, which it said breached account data for a small number of its customers.
At the time of writing, Coinbase shares were trading at $251.57. The shares are up 43 per cent over the past month.
Share boost: Coinbase shares jumped on the news it will join the S&P 500
Following the S&P 500 news, Coinbase chief executive Brian Armstrong told Yahoo Finance: 'Coinbase joining the S&P 500 means crypto's here to stay.'
'Our long-term goal is we want to be the largest financial service app in the world.'
Nick Jones, founder and chief executive of digital assets firm Zumo, said: 'This is a huge moment for crypto's move into the mainstream - and the UK should be watching developments closely.
'Digital assets are becoming increasingly woven into the institutional fabric.
'HM Treasury and the Financial Conduct Authority are now working on creating an appropriate regulatory regime for crypto assets to help the UK economy take advantage of the growth opportunities on offer.
'But in the meantime the UK is conspicuously lacking the deals done, the positive announcements, and the product and institutional movement seen in the US - and even the EU.'
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Cyber attack 'huge blow'
Coinbase said that names, addresses and emails were stolen by the hackers in the cyber attack, but that login details remain secure.
The firm said it will reimburse customers who were tricked into sending money to the hackers.
Jones said: 'This is understandably a huge blow for a company that has had a pivotal few weeks, announcing the acquisition of Deribit in the digital market's largest deal to date, and then joining the S&P 500.
'This attack underlines the critical importance of robust cybersecurity measures.'
Meanwhile, bitcoin surged back above $100,000 last week but failed to break the $105,000 barrier. On Thursday, bitcoin was trading at $102,345.80. The cryptocurrency peaked at $104,167.60 on Tuesday.
Simon Peters, crypto analyst at Etoro, said: 'The rally higher in the bitcoin price last week coincided with news that the United Kingdom had become the first country to agree a trade deal with the US since President Trump imposed tariffs in April.
'Although the UK is not the biggest of trading partners, it gave confidence to markets that with this first trade deal over the line, it could be the beginning of more to come.'
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Coinbase surges on S&P 500 debut, but cyber attack dampens share gains
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