Home / Coinbase News: Security Breach, Earnings, & S&P 500 Debut

Coinbase News: Security Breach, Earnings, & S&P 500 Debut

By: Jasmin Espinas
May 15, 2025

Coinbase is among the largest cryptocurrency platforms in the world. As more investors and institutions show interest in crypto, Coinbase remains a company to watch. In recent Coinbase news, the company experienced a security breach that exposed some user data.

This roundup will discuss the details of the security breach, Coinbase’s earnings from the first quarter of 2025, its addition to the S&P 500, and its latest acquisition deal.

Latest Coinbase News: Cybersecurity Breach for $20 Million Ransom

On May 15, 2025, Coinbase shared that hackers had stolen personal information from some of its customers. The attackers are asking for $20 million and are threatening to release the data if the company does not pay.

According to CEO Brian Armstrong, the hackers initiated a social engineering attack where they bribed customer support workers outside the U.S. These workers gave up private details, including names, birth dates, and parts of social security numbers.

https://t.co/evpIBMFvRW pic.twitter.com/f6UPdkL5R0

— Brian Armstrong (@brian_armstrong) May 15, 2025

While the hackers did not obtain passwords or login information, they did access other personal data, such as email addresses and home addresses. Coinbase said it will repay the customers who lost money in the scam.

The company also said it fired all workers involved. In a report to the Securities and Exchange Commission (SEC), Coinbase estimated the financial damage could be between $180 million and $400 million. After this news, its stock dropped by almost 3%.

Coinbase Set to Be the First Cryptocurrency Firm in the S&P 500

On May 19, Coinbase will officially join the S&P 500, replacing Discover Financial Services. This change is happening because Capital One is buying Discover, and the deal is close to final approval.

When a company joins the S&P 500, its stock often goes up. That’s because investment funds that follow the index need to buy shares of the new company.

The S&P 500 also includes many large tech companies, such as Dell, Palantir, Super Micro Computer, and CrowdStrike, and continues to grow with others from the sector. To qualify, a company must report a profit in the most recent quarter and show a total profit across the last four quarters. Coinbase was able to meet these requirements.

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Coinbase Agrees to Buy Deribit for $2.9 Billion

On May 8, Coinbase announced plans to buy Deribit, a crypto derivatives exchange, for $2.9 billion. The deal includes $700 million in cash and 11 million shares of Coinbase’s Class A stock.

With this move, Coinbase aims to expand its services to international customers by offering crypto options. These financial tools let traders manage risk and stay active during market swings.

Deribit is one of the largest platforms for crypto options. By acquiring the firm, Coinbase hopes to attract more experienced retail traders and grow its base of institutional investors.

Greg Tusar, who leads institutional products at Coinbase, said crypto options could grow quickly, just like equity options did in the 1990s.

Financial Performance: Q1 2025 Earnings Released

Coinbase released its Q1 2025 earnings in a shareholder letter on May 8, 2025. The company brought in $2 billion in total revenue and reported $66 million in net income. After adjusting for gains and losses on crypto assets, adjusted net income came to $527 million. Adjusted EBITDA reached $930 million.

Most of the revenue came from transaction fees, totaling $1.3 billion. The rest came from subscriptions and services, which made nearly $700 million. This growth came mainly from stablecoin activity and the Coinbase One service.

Coinbase currently holds $9.9 billion in cash and other USD-based assets. The company says this gives it the ability to grow and invest in long-term projects.

During the quarter, Coinbase expanded its global market share in both spot and derivatives trading. It also saw continued growth in USDC, the second-largest stablecoin tied to the U.S. dollar. USDC’s market cap passed $60 billion, helped by increased balances from both retail and institutional users.

Coinbase also registered its services in Argentina and India, pushing its international growth. On the legal side, it made progress through policy efforts, including support for bipartisan crypto laws and the announcement of a Strategic Bitcoin Reserve.

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Coinbase News: Key Takeaways

Coinbase continues to grow its presence in the crypto and financial sectors. These developments reflect both the company’s expanding role and the fast-changing nature of the digital asset industry.

However, the recent security breach raises questions about internal controls and vendor oversight. Coinbase will need to strengthen safeguards to maintain user trust and limit future risk.

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