New Hampshire Considers $100 Million Bitcoin-Backed Bond

Proposal Details and Structure

The New Hampshire Business Finance Authority has placed the item on the agenda for review by Governor Kelly Ayotte and the Executive Council. The plan involves issuing not more than $100 million in taxable revenue bonds to support Bitcoin purchases by the NH CleanSpark Borrower Trust 2026-1.

Proceeds from the bonds would cover Bitcoin acquisition costs and related issuance expenses. The structure designates a private entity as the borrower, with repayment linked to the transaction rather than state funds or taxpayer resources.

Approval Process and Timeline

The public hearing is set for July 8 at 10:00 a.m. under relevant state statutes. The Business Finance Authority previously approved the framework in November 2025, pending final authorization from the Governor and Executive Council. A vote in favor would allow the authority to proceed with issuance.

This step follows Moody’s assignment of a provisional Ba2 rating to the bonds earlier in the process. The rating places the issuance in the speculative grade category due to credit risk factors associated with the collateral.

Connection to State Bitcoin Policies

The proposal aligns with New Hampshire’s prior actions on digital assets. In 2025, the state passed legislation establishing a strategic Bitcoin reserve, permitting allocation of up to 5% of certain public funds into qualifying digital assets, primarily Bitcoin.

James Key-Wallace, executive director of the Business Finance Authority, has described the model as one that could establish the state’s role in responsible approaches to digital asset finance. The bond uses a conduit structure between private investors and the private borrower, with Bitcoin as the backing asset.

Risk Considerations and Expert Views

David Krause, emeritus finance professor at Marquette University, reviewed the proposal and noted its innovative aspects while pointing to challenges from asset volatility. He stated that the structure insulates the state from direct financial liability but introduces questions about suitability for broader public finance applications.

Wave Digital Assets is involved in administering the transaction. The setup includes mechanisms to handle collateral management and investor protections tied to Bitcoin value movements.

Broader Context in Digital Asset Finance

This initiative occurs amid growing corporate and institutional engagement with Bitcoin treasury strategies. Companies have explored various funding methods, including equity, debt instruments, and now specialized bond structures incorporating digital asset collateral.

New Hampshire’s effort stands out as an attempt to incorporate such mechanisms at the state level through a quasi-governmental authority, distinct from direct government obligations. Similar concepts have appeared in other jurisdictions, such as El Salvador’s earlier Volcano Bonds proposal, which did not advance to issuance.

The hearing represents a key decision point for the proposal. Outcomes will determine next steps in the potential issuance process for these bonds.