Strategy’s first bitcoin (MSTR) The selling since 2022 may have been small relative to its huge holdings of $58 billion, but the market reaction could signal a broader shift in crypto markets, according to Standard Chartered’s head of digital assets research, Geoff Kendrick.
In a note to clients, Kendrick noted that ether (ETH) significantly outperformed bitcoin. on the day the sale was announced, despite broader weakness in cryptocurrency prices. Since Monday, ETH has appreciated 5% relative to BTC.
Among the sessions in which Bitcoin fell, the move ranked among the biggest gains for ETH versus BTC since early 2024, he noted.
“I see [Monday] as the beginning of ETH’s outperformance against BTC,” Kendrick wrote.
The call comes as investors continue to debate whether ether can regain momentum after lagging behind bitcoin for much of the past two years. Since September 2022, when the Ethereum network moved from a mining-focused proof-of-work model to a proof-of-stake model, ETH has depreciated 66% against BTC, hitting a five-year low in April 2025. That bearish trend has shown signs of changing, however, as ETH has rebounded more than 60% from last year’s lows.
Kendrick, who has a long-term ETH price target of $4,000 by the end of 2026 and $40,000 by 2030, said he expects the ETH-BTC ratio to rise to 0.04 by the end of the year from around 0.028 currently, implying that ether would outperform bitcoin by more than 40% even if both assets rise or fall.
This is not the first time that Kendrick has predicted that ETH will surpass 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 like ETH by unlocking the next chapter for decentralized finance.
Bitcoin vs. Ethereum Digital Asset Treasuries
While Strategy’s bitcoin sale has shaken the market, Kendrick argued that the importance of the transaction is not the $2.5 million in BTC that changed hands, but what it reveals about the different economics of bitcoin and ether treasury companies.
Strategy (MSTR) and other bitcoin treasury companies rely heavily on bitcoin price appreciation and capital markets activity to support their business models. Because bitcoin does not generate returns, treasury companies may occasionally need to sell holdings or raise capital to cover expenses and obligations.
Read more: The strategy caused panic with the sale of bitcoins, but analysts say it was “immaterial”
Meanwhile, ETH can be staked for a return, currently around 3% annualized, providing a source of income without the need for companies to liquidate assets.
For example, Tom Lee’s Bitmine (BMNR), Ethereum’s largest treasury, amassed an ETH reserve of $11 billion without issuing any debt. While that bet is deep in the water, the company estimates its staking operations generate approximately $258 million in annualized revenue, with projected rewards approaching $300 million annually through its MAVAN staking platform.
Kendrick argued that staking revenue makes ether treasury companies more self-sustaining than their bitcoin-focused peers. While Ethereum treasury companies like Bitmine and SharpLink Gaming (SBET) currently trade at lower premiums than Strategy (MSTR), expect investors to reward them for generating recurring income from their holdings, which will help close that valuation gap over time.
Read more: Saylor’s strategy sold bitcoin for the first time since 2022. These companies are still buying
