New Hampshire Council Rejects $100M Bitcoin-Backed Bond

The New Hampshire Executive Council voted 3-2 on July 8 to deny final approval for a proposed $100 million municipal bond that would have been secured by Bitcoin collateral. The vote stopped the proposal from moving into the state’s municipal finance pipeline.

The financing plan was advanced by the New Hampshire Business Finance Authority, which said its board approved an initial $100 million issuance in November but required sign-off from the Governor and the five-member Executive Council. A procedural motion to table the proposal failed to receive a second, and the council then voted to withhold approval.

The structure was developed by Wave Digital Assets and Rosemawr Management in partnership with the Business Finance Authority. Legal counsel for the authority was provided by Orrick, and BitGo Trust Company was named as the custodian for the Bitcoin pledged as collateral. The bonds were tied to a loan to NH CleanSpark Borrower Trust 2026-1.

Moody’s Investors Service issued a provisional Ba2 rating on up to $100 million in taxable revenue bonds linked to the plan. Ba2 is below investment grade; the provisional rating reflected factors such as how Bitcoin could be priced, haircuts to collateral and procedures for liquidation under the proposed structure.

BFA officials, along with Governor Kelly Ayotte and BFA Executive Director James Key-Wallace, said the issuance was structured to keep taxpayer funds and state guarantees from being liable for losses tied to the Bitcoin collateral. Despite those assurances, council members chose not to authorize the issuance during the public hearing.

Because the Executive Council’s approval was required for the bond to proceed, the rejection prevents the proposal as presented from becoming an approved municipal issuance. The Business Finance Authority may return with a revised proposal for future consideration.