New Hampshire Rejects $100M Bitcoin-Backed Bond Plan Amid Volatility Concerns

New Hampshire's Executive Council has rejected a proposal to issue up to $100 million in taxable conduit revenue bonds backed by Bitcoin, marking a significant setback for the state's efforts to become a hub for cryptocurrency finance.

The bond issuance would have relied entirely on Bitcoin collateral supplied by a private borrower affiliated with CleanSpark, a leading Bitcoin mining company. Supporters argued that this innovative financing model could bridge traditional capital markets with digital assets and attract investment without exposing taxpayers to financial losses.

However, the proposal was met with skepticism from some council members who expressed concerns about the volatility of cryptocurrencies and the potential risks associated with using them as collateral.

Although the measure was ultimately rejected by a 3-2 vote, Governor Kelly Ayotte had publicly endorsed the initiative, describing it as an 'innovative financial solution' that could position New Hampshire as a national leader in blockchain-related investment.