Coinbase stock has been hammered in recent months as it's been at the mercy of the brutal Bitcoin selloff.

But it doesn't always have to be that way. In fact, the shares' 16% post-earnings surge Friday -- even as cryptocurrency prices remained relatively subdued -- is a sign it could start moving independently of volatile digital asset prices.

The earnings weren't much to write home about, with the recent crypto weakness to blame. The company swung to a quarterly loss and revenue slumped 22% -- both missed estimates. However, its push to become an "everything exchange" is starting to pay off.

Coinbase doubled its total trading volume and crypto trading market share in 2025, while its Coinbase One monthly membership hit 1 million subscriptions. It has already registered record volumes in gold and silver and prediction markets in the first quarter of 2026.

Cathie Wood's ARK Invest turned bullish, buying 92,854 shares across three exchange-traded funds, according to a trading notification Friday. The purchase was worth more than $15 million based on the closing price. ARK sold some of its Coinbase stock earlier this month following Bitcoin's drop.

"The stock trades like levered crypto beta, moving tightly with digital asset prices, yet its underlying business is evolving into something more diverse and durable," Benchmark analyst Mark Palmer said in a note Friday. He has a Buy rating on the stock with a price target of $267, implying 62% upside to Friday's closing price.

Palmer added that Coinbase's doubling of trading volume and market share in 2025, the scaling of its derivatives platform, and its continuing stablecoin adoption supports Benchmark's view that "the stock offers exposure to a compelling long-term secular growth story."

The stock could also benefit from a recovery in digital asset prices. "We are assuming crypto prices begin to stabilize in coming weeks and start to recover in the second quarter," Deutsche Bank analyst Brian Bedell said in a note Friday. He lowered his price target on Coinbase stock to $250 from $331 but maintained a Buy rating.

That's also true for other crypto-exposed stocks. Strategy, the largest corporate holder of Bitcoin, has been one of the worst-hit stocks -- down 63% over the past six months.

The company took steps to reassure investors Sunday, saying it has enough assets to cover its debt even if Bitcoin falls to $8,000.