New Hampshire Bitcoin-Backed Bond Receives Investment Grade Rating

The New Hampshire Business Finance Authority (BFA) has made significant progress in its proposal for a $100 million municipal bond backed by bitcoin, receiving a Ba2 rating from Moody's Investors Service.

The proposed structure, which would be the first of its kind, involves CleanSpark posting bitcoin collateral that would fund bond payments. The deal also includes provisions for upside exposure tied to bitcoin price appreciation and downside protections in case of a decline in value.

The bonds carry no backing from taxpayers, with Moody's noting that 'no public funds of the State of New Hampshire or any political subdivision thereof may be used to pay amounts under the rated bonds.'