Standard Chartered’s Geoffrey Kendrick says MicroStrategy’s first Bitcoin sale since 2022 may signal the beginning of ether outperformance against BTC, even as the disclosed amount represented a fractional share of the company’s holdings.
The bank’s Global Head of Digital Assets Research argued that the symbolic crack in MicroStrategy’s no-sell stance exposes a structural advantage for Ethereum treasury firms, which can rely on staking rewards rather than spot sales to fund operations.
MicroStrategy’s Bitcoin Sale Triggers Sharp Reaction
Strategy disclosed in a Monday filing detailed that it sold 32 bitcoin during the final week of May, a sliver of its 843,706 BTC treasury. The proceeds covered preferred stock dividends.
Although the dollar value was roughly $2.5 million, the announcement broke a long-standing narrative built around the firm’s refusal to sell.
Bitcoin traded for $67,875 on Tuesday, down nearly 5% over 24 hours, as sentiment around the MicroStrategy sale continues to weigh heavy on price.
Market maker Wintermute said long-term funds have begun buying Bitcoin in OTC tranches near current levels, viewing the dip as attractive on an 18-month horizon. The desk flagged $60,000 to $65,000 as key downside support.
“…we’re seeing longer-term holders start to TWAP into the market through the OTC desk, with no appetite to call the exact bottom but a view that these levels look attractive on an 18-month basis,” the market maker indicated.
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Just as the MicroStrategy sale distresses Bitcoin price, the firm’s stock, MSTR, is also falling, and has slid nearly 10% across two sessions.
Kendrick Maps Path to ETH Outperformance
Kendrick anchored his thesis to the price reaction rather than the size of the sale. He tied the move to a structural reset in the relative trade between the two largest cryptocurrencies.
“I see yesterday as being the start of ETH outperformance v BTC.”
He projected the ETH-BTC ratio to climb from roughly 0.028 to 0.040 by year-end, an outlook he said would hold even if Strategy quickly repurchased multiples of the sold bitcoin.
His long-term ETH price targets remain $4,000 by the end of 2026 and $40,000 by 2030.
Monday marked one of the largest ETH-BTC topside moves on a bitcoin down day since the start of 2024, with only 23 larger relative ether gains recorded over that span.
“Days like yesterday form important turning points for ETH-BTC.”
Staking Advantage Reframes Treasury Math
The core of Kendrick’s argument rests on a yield gap between the two asset classes. Ether holders staking their tokens earn roughly 3%, sparing Ethereum treasury firms the pressure to sell that bitcoin holders occasionally face.
