Key Points
- New Hampshire BFA plans $100M Bitcoin-backed bond with speculative Ba2 Moody’s rating.
- Debt backed solely by Bitcoin collateral, without state taxpayer liability.
The New Hampshire Business Finance Authority (BFA) is preparing to issue $100 million in Bitcoin-collateralized bonds, receiving a provisional Ba2 rating from Moody’s Investors Service.
A Ba2 rating falls below investment grade, marking the first known instance of a U.S. public authority offering debt fully backed by Bitcoin.
Because most municipal bond funds and pension mandates require investment-grade holdings, the rating limits participation primarily to high-yield municipal investors, hedge funds, and crypto-focused allocators.
Bond Structure and Collateral Framework
The issuance will consist of two series, 2026A-1 and 2026A-2, both maturing in 2029, according to Moody’s.
Holders of Series 2026A-2 may receive additional payments at maturity if Bitcoin appreciates beyond amounts required to cover principal, interest, and associated costs.
The borrowing entity, NH Cleanspark Borrower Trust 2026-1, is affiliated with CleanSpark, a publicly traded mining company that will pledge Bitcoin as collateral.
BitGo Bank & Trust will act as custodian, maintaining the digital assets in segregated wallets and overseeing potential liquidation to meet payment obligations.
Risk Structure and Coverage Triggers
The bonds are structured as limited recourse obligations, payable solely from proceeds generated by the pledged Bitcoin.
No state funds guarantee repayment, and the BFA does not assume general obligation liability, separating the debt from taxpayer backing.
At launch, the collateral must maintain a 1.60x coverage ratio relative to the outstanding loan balance.
If the ratio declines to 1.40x, a mandatory full redemption of the bonds would be triggered.
Moody’s applied a 72.06% advance rate in its assessment, reflecting price volatility and an assumed two-day liquidation window for converting Bitcoin into cash.
