The 32 BTC sale was the first time Strategy has sold Bitcoin since 2022, and it was made to fund dividends on its preferred stock . That detail matters. Strategy’s corporate identity has been built on aggressive Bitcoin accumulation and the promise that it would never sell.

When that promise broke, Kendrick says the market treated it as more than an isolated event. It became a signal that Bitcoin treasury models carry an inherent flaw: they produce no income from their assets . If a company’s only way to meet cash obligations is to sell the underlying asset or dilute shareholders, the model becomes self-defeating as the treasury grows and dividend payments mount .

The 3% Yield That Changes the Game

The core of Standard Chartered’s argument hinges on staking yield. Ethereum uses proof-of-stake, meaning holders can stake their ETH to earn a return—roughly 3% annually at current rates .

For corporate treasuries, this changes the math entirely:

• Bitcoin treasuries generate zero cash flow. To pay dividends, operating costs, or debt service, they must either sell BTC or issue more equity, diluting shareholders.
• Ethereum treasuries can stake their holdings and use the yield to cover those same obligations without touching the principal.

Kendrick’s own words are blunt:

“Given that ETH treasury companies are able to capture ETH's 3% staking yield, I see no reason for the net asset value (NAV) multiples to be below MSTR's multiple.”

In this framework, Ethereum’s structural advantage is permanent. A Bitcoin treasury is a forced seller by design. An Ethereum treasury is self-sustaining.

The ETH-BTC Ratio: From Historic Lows to a Re-Rating

The ETH-BTC ratio measures how many Bitcoin one Ether can buy. In mid-2026, that ratio has collapsed to roughly the 0.018–0.020 range, near its lowest levels in years . For context, it peaked near 0.08 during the 2021 bull market, meaning Bitcoin has dramatically outperformed Ethereum over the past several years.

Kendrick expects that trend to reverse :

• Near-term target: 0.040 ETH-BTC. That would represent roughly 40% outperformance by Ethereum relative to Bitcoin from current levels .
• Long-term target: A return to the 0.08 ratio last seen in 2021. This figure anchors Standard Chartered’s decade-end Ethereum price forecast .

The catalyst for this re-rating, in Kendrick’s view, is the market’s realization that the Ethereum treasury model is structurally superior. Instead of fixating on Ethereum’s recent price weakness, investors will increasingly value its yield-generating capability .

Standard Chartered’s Ethereum Price Targets

Standard Chartered’s current Ethereum forecasts, updated as of late May 2026, reflect both near-term caution and long-term conviction :

• Year-end 2026: $4,000 per ETH .
• End of decade (2030): $40,000 per ETH .

These numbers have been revised downward during 2026. The bank previously targeted $7,500 for year-end 2026, then lowered that projection as Ethereum prices fell sharply from their August 2025 all-time high near $4,954 . Still, Standard Chartered calls 2026 “the Year of Ethereum” and maintains that the downside is already priced in .

The $40,000 decade-end target assumes the ETH-BTC ratio climbs back to 0.08, which would require Bitcoin itself to reach roughly $500,000 under the bank’s parallel BTC forecast . While that scenario is ambitious—and far from guaranteed—it illustrates the scale of the re-rating Kendrick envisions.

Why Ethereum’s Underperformance Makes the Case Stronger

Ethereum’s current backdrop makes the thesis especially contrarian. Key numbers:

• ETH price: approximately $2,000, down roughly 60% from its August 2025 peak .
• ETH-BTC ratio: collapsed from ~0.08 in 2021 to ~0.018–0.020 .
• On-chain fundamentals: Layer-2 activity, staking participation, DeFi usage, and institutional ETF inflows have all strengthened during this drawdown .

Kendrick describes this as a “structural disconnect” between price and adoption . In his view, the Strategy Bitcoin sale is the moment the market begins to close that gap—not because Bitcoin collapses, but because Ethereum’s yield advantage becomes too significant to ignore .

Whether that re-rating happens on his timeline is uncertain. Price targets from major banks have swung widely during this cycle: Standard Chartered itself has cut and then partially raised its Ethereum forecasts multiple times . No one can guarantee the ETH-BTC ratio will return to 0.08. But the analytical framework—that a yield-bearing asset has a permanent structural advantage over a zero-yield asset in a corporate treasury—is more durable than any single price target.

The 32 BTC sale was the first time Strategy has sold Bitcoin since 2022, and it was made to fund dividends on its preferred stock . That detail matters. Strategy’s corporate identity has been built on aggressive Bitcoin accumulation and the promise that it would never sell.

When that promise broke, Kendrick says the market treated it as more than an isolated event. It became a signal that Bitcoin treasury models carry an inherent flaw: they produce no income from their assets . If a company’s only way to meet cash obligations is to sell the underlying asset or dilute shareholders, the model becomes self-defeating as the treasury grows and dividend payments mount .

The 3% Yield That Changes the Game

The core of Standard Chartered’s argument hinges on staking yield. Ethereum uses proof-of-stake, meaning holders can stake their ETH to earn a return—roughly 3% annually at current rates .

For corporate treasuries, this changes the math entirely:

• Bitcoin treasuries generate zero cash flow. To pay dividends, operating costs, or debt service, they must either sell BTC or issue more equity, diluting shareholders.
• Ethereum treasuries can stake their holdings and use the yield to cover those same obligations without touching the principal.

Kendrick’s own words are blunt:

“Given that ETH treasury companies are able to capture ETH's 3% staking yield, I see no reason for the net asset value (NAV) multiples to be below MSTR's multiple.”

In this framework, Ethereum’s structural advantage is permanent. A Bitcoin treasury is a forced seller by design. An Ethereum treasury is self-sustaining.

The ETH-BTC Ratio: From Historic Lows to a Re-Rating

The ETH-BTC ratio measures how many Bitcoin one Ether can buy. In mid-2026, that ratio has collapsed to roughly the 0.018–0.020 range, near its lowest levels in years . For context, it peaked near 0.08 during the 2021 bull market, meaning Bitcoin has dramatically outperformed Ethereum over the past several years.

Kendrick expects that trend to reverse :

• Near-term target: 0.040 ETH-BTC. That would represent roughly 40% outperformance by Ethereum relative to Bitcoin from current levels .
• Long-term target: A return to the 0.08 ratio last seen in 2021. This figure anchors Standard Chartered’s decade-end Ethereum price forecast .

The catalyst for this re-rating, in Kendrick’s view, is the market’s realization that the Ethereum treasury model is structurally superior. Instead of fixating on Ethereum’s recent price weakness, investors will increasingly value its yield-generating capability .

Standard Chartered’s Ethereum Price Targets

Standard Chartered’s current Ethereum forecasts, updated as of late May 2026, reflect both near-term caution and long-term conviction :

• Year-end 2026: $4,000 per ETH .
• End of decade (2030): $40,000 per ETH .

These numbers have been revised downward during 2026. The bank previously targeted $7,500 for year-end 2026, then lowered that projection as Ethereum prices fell sharply from their August 2025 all-time high near $4,954 . Still, Standard Chartered calls 2026 “the Year of Ethereum” and maintains that the downside is already priced in .

The $40,000 decade-end target assumes the ETH-BTC ratio climbs back to 0.08, which would require Bitcoin itself to reach roughly $500,000 under the bank’s parallel BTC forecast . While that scenario is ambitious—and far from guaranteed—it illustrates the scale of the re-rating Kendrick envisions.

Why Ethereum’s Underperformance Makes the Case Stronger

Ethereum’s current backdrop makes the thesis especially contrarian. Key numbers:

• ETH price: approximately $2,000, down roughly 60% from its August 2025 peak .
• ETH-BTC ratio: collapsed from ~0.08 in 2021 to ~0.018–0.020 .
• On-chain fundamentals: Layer-2 activity, staking participation, DeFi usage, and institutional ETF inflows have all strengthened during this drawdown .

Kendrick describes this as a “structural disconnect” between price and adoption . In his view, the Strategy Bitcoin sale is the moment the market begins to close that gap—not because Bitcoin collapses, but because Ethereum’s yield advantage becomes too significant to ignore .

Whether that re-rating happens on his timeline is uncertain. Price targets from major banks have swung widely during this cycle: Standard Chartered itself has cut and then partially raised its Ethereum forecasts multiple times . No one can guarantee the ETH-BTC ratio will return to 0.08. But the analytical framework—that a yield-bearing asset has a permanent structural advantage over a zero-yield asset in a corporate treasury—is more durable than any single price target.