New Hampshire Business Finance Authority to Issue $100 Million Bitcoin-Backed Bonds

The New Hampshire Business Finance Authority is preparing to issue $100 million in Bitcoin-backed bonds. The deal has received a “Ba2” rating from Moody’s Investors Services, placing it in the speculative-grade category and signaling elevated risk for investors. The bonds will be issued through a quasi-public state agency and will be structured into two classes with an initial total balance of $100 million.

According to the statement released by Moody’s, the balances for each class have yet to be determined. 

Speculative-Grade Rating 

The rating agency said it considered all elevated risks, "particularly those associated with the transaction's collateral, structure and operation risks of various service providers." The bonds will be backed by a loan collateralized with Bitcoin. They will be structured as “limited recourse obligations,” meaning repayment depends solely on the performance and liquidation of the Bitcoin collateral, rather than public funds. 

Digital asset firm BitGo will act as custodian, holding the Bitcoin in segregated wallets and serving as the liquidation agent to ensure timely payments of interest and principal payments. The bonds will adopt a standard safeguard mechanism that includes regular monitoring of collateral value. If the loan-to-value ratio falls below expectations, a mandatory redemption of the bonds will be triggered.

The initiative comes during broader efforts across the United States to integrate cryptocurrencies into financial systems. Recently, the U.S Department of Labor proposed a rule allowing crypto investments in retirement plans following an executive order by President Donald Trump.