New Hampshire Rejects $100 Million Bitcoin Bond Proposal

New Hampshire's attempt to issue up to $100 million in taxable conduit revenue bonds backed by bitcoin has hit a roadblock. The New Hampshire Executive Council voted 3-2 against the proposal, which would have allowed the New Hampshire Business Finance Authority to serve as a conduit issuer for bonds financing a private borrower tied to CleanSpark.

Under the proposed structure, the bitcoin mining and data center company would have deposited roughly $160 million in bitcoin as collateral. The bonds were designed as 'limited-recourse obligations,' meaning bondholders would have recourse only to the bitcoin collateral and related proceeds, with no obligation or risk to New Hampshire taxpayers or the state's general credit.

New Hampshire Governor Kelly Ayotte had expressed support for the proposal, calling it a historic and innovative way to bring more investment opportunities to the state without risking state funds or taxpayer dollars. However, some critics have argued that the decision was short-sighted and would hurt economic growth by choking revenue from potential future conduit bonds.