Record-Low Bitcoin Yardstick Signals BTC Is Deeply Undervalued

The Bitcoin Yardstick is a valuation metric used by Capriole Investments to measure Bitcoin’s market capitalization relative to the network hash rate, helping assess whether its price has diverged from mining and network-security fundamentals. A low reading means BTC is priced lower for each unit of computing power and is therefore viewed as a potential undervaluation signal.

Capriole Investments founder Charles Edwards said the Bitcoin Yardstick hit an all-time low in February 2026. BTC was then trading about 40% below its previous peak, although the report did not disclose its exact U.S. dollar price. The network hash rate nevertheless remained near record highs, indicating that mining activity and network security were still resilient.