New Hampshire plans to issue municipal bonds backed by Bitcoin; Moody’s assigns a junk rating. According to Bloomberg, New Hampshire’s Business Finance Authority plans to issue $100 million in Bitcoin-backed municipal bonds—the first financial product to combine high-risk crypto assets with traditional, secure municipal debt. Moody’s assigned a Ba2 rating—two notches below investment grade, commonly known as “junk.” Structurally, bond principal and interest payments are funded by returns generated from Bitcoin collateral; if the Bitcoin price falls below a specified threshold, the trust will be forcibly liquidated to fully repay bondholders. Wave Digital Assets manages daily trading, BitGo Bank & Trust serves as custodian, and Bitcoin mining company CleanSpark borrows funds and provides the collateral. The governor emphasized caution: this initiative involves no state funds or taxpayer risk—it simply introduces new investment opportunities to the state.
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