The strategy’s (MSTR) first bitcoin The selloff since 2022 may have been small compared to its massive $58 billion in holdings, but the market’s reaction could signal a broader shift in crypto markets, according to Standard Chartered’s head of digital asset research, Geoff Kendrick.
In a note to clients, Kendrick pointed out that ether (ETH) significantly outperformed bitcoin the day the sale was announced, despite broader weakness in crypto prices. Since Monday, ETH is up 5% against BTC.
Among sessions where bitcoin fell, the move was among the biggest ETH versus BTC gains since the start of 2024, he noted.
“I can see [Monday] as being the start of ETH outperformance versus 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 transitioned from a mining-centric proof-of-work to a proof-of-stake model, ETH has fallen 66% against BTC, reaching a five-year low in April 2025. However, the downward trend has shown signs of shifting, as ETH is up more than 6% over the past year.
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% higher than both assets.
This is not the first time Kendrick has predicted that 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 unlock the next chapter of decentralized finance.
Bitcoin vs. Ethereum digital assets
While Strategy’s bitcoin sale has rattled the market, Kendrick argued that the significance 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 tax companies.
Strategy (MSTR) and other bitcoin treasury companies rely heavily on bitcoin price appreciation and capital market activity to support their business models. Because bitcoin does not generate returns, financial companies may occasionally need to sell holdings or raise capital to cover expenses and liabilities.
Read more: Strategy sparked bitcoin selloff panic, but analysts say it was ‘inconsequential’
Meanwhile, ETH can be bet to earn returns, currently around 3% annually, providing a source of income without requiring companies to liquidate assets.
For example, Tom Lee’s Bitmine (BMNR), the largest Ethereum treasury, has amassed an ETH holding of $11 billion without issuing any debt. Although this bet is deep underwater, the firm estimates its betting operations generate about $258 million in annual revenue, with expected rewards approaching $300 million annually through its MAVAN betting platform.
Kendrick argued that staking revenue makes ether finance companies more self-sustaining than their bitcoin-focused peers. While Ethereum treasury firms 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 first time since 2022. These firms are still buying
