Strategy’s first bitcoin (MSTR) the sell-off since 2022 may have been minimal compared to its massive $58 billion holdings, but the market reaction could signal a broader shift in crypto markets, according to Geoff Kendrick, head of digital assets research at Standard Chartered.
In a note to clients, Kendrick highlighted that ether (ETH) has significantly outperformed bitcoin. on the day the sale was announced, despite broader weakness in crypto prices. Since Monday, ETH has appreciated by 5% against BTC.
Among sessions in which Bitcoin declined, the move ranked among the largest gains for ETH versus BTC since the start of 2024, he noted.
“I see [Monday] as the start of ETH’s outperformance against BTC,” Kendrick wrote.
The call comes as investors continue to question whether ether can regain momentum after lagging bitcoin for much of the past two years. Since September 2022, when the Ethereum network shifted from a mining-centric proof-of-work model to a proof-of-stake model, ETH has depreciated 66% against BTC, hitting a five-year low in April 2025. This downward trend, however, has shown signs of changing, as ETH has rebounded over 60% from last year’s lows.
Kendrick, who has a long-term price target for ETH of $4,000 by the end of 2026 and $40,000 by 2030, said he expects the ETH-BTC ratio to climb to 0.04 by the end of the year from around 0.028 currently, implying that ether will outperform bitcoin by more than 40%, even if both assets increase or decrease.
This is not the first time Kendrick has predicted ETH will outperform bitcoin. Earlier this year, he made a similar call, citing the passage of the US Clarity Act, which he said would create a regulatory framework for the sector and boost digital assets such as ETH, as it would usher in the next chapter of decentralized finance.
Bitcoin vs Ethereum Digital Asset Cashes
Although Strategy’s bitcoin sale shook the market, Kendrick argued that the significance of the transaction lies not in the $2.5 million in BTC that changed hands, but in what it reveals about the different economics of the Bitcoin and Ether cash companies.
Strategy (MSTR) and other Bitcoin treasury companies rely heavily on Bitcoin price appreciation and capital markets activity to support their business models. Since bitcoin does not generate a return, treasury companies may occasionally need to sell stakes or raise capital to cover their expenses and obligations.
Read more: Strategy sparked panic with Bitcoin sell-off, but analysts say it was ‘irrelevant’
Meanwhile, ETH can be staked for a yield, currently around 3% annualized, providing a source of income without requiring companies to liquidate their assets.
For example, Tom Lee’s Bitmine (BMNR), Ethereum’s largest hoard, amassed an $11 billion ETH stash without issuing debt. While this bet is deeply underwater, the company estimates that its staking operations generate approximately $258 million in annualized revenue, with projected rewards approaching $300 million per year through its MAVAN staking platform.
Kendrick argued that staking revenue makes ether cash companies more self-sufficient than their Bitcoin-focused peers. While Ethereum treasury companies such as Bitmine and SharpLink Gaming (SBET) currently trade at lower premiums than Strategy (MSTR), he expects investors to reward them for generating recurring income from their holdings, helping to close this valuation gap over time.
Read more: Saylor’s Strategy sold Bitcoin for the first time since 2022. These companies are still buying
