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New Hampshire is advancing a first-of-its-kind bitcoin-backed municipal bond—rated Ba2 by Moody’s Investors Service—that blends crypto volatility with traditional debt markets by offering investors yield plus upside tied to bitcoin collateral without taxpayer risk.
A first-of-its-kind municipal bond backed by bitcoin is moving closer to issuance after receiving a sub-investment-grade rating from Moody’s Investors Service, marking a major step in the convergence of digital assets and traditional public finance.
The proposed $100 million issuance, structured by the New Hampshire Business Finance Authority (BFA), earned a Ba2 rating — two notches below investment grade, according to Bloomberg reporting.
If completed, the deal would represent the first municipal bond backed by bitcoin collateral, opening a potential new pathway for institutional capital to access the asset class through regulated fixed-income markets.
Under the proposed structure, bond payments will be funded through proceeds generated from bitcoin collateral posted by borrower CleanSpark. Investors will also have upside exposure, with additional payments tied to bitcoin price appreciation.
At the same time, downside protections are built into the deal. If bitcoin’s price falls below a predefined threshold, the trust can be liquidated to repay bondholders in full.
“No public funds of the State of New Hampshire or any political subdivision thereof may be used to pay amounts under the rated bonds,” Moody’s noted in its report, emphasizing that the issuer has no taxing authority to cover any shortfall.
Digital asset firm Wave Digital Assets will oversee transaction administration, while BitGo will serve as custodian for the bitcoin collateral, securing it in regulated cold storage.
The structure was initially approved by the BFA board back in November, 2025, positioning New Hampshire as a potential leader in integrating bitcoin into public finance markets.
Governor Kelly Ayotte backed the initiative at the time, framing it as a way to attract investment without exposing taxpayers to risk.
“This is an innovative way to bring more investment opportunities to our state and position us as a leader in digital finance,” Ayotte said.
The Ba2 rating underscores the core tension at the heart of the product: combining one of the most volatile asset classes with one of the traditionally safest.
