New Hampshire Executive Council Rejects Bitcoin-Backed Bond Proposal
In a significant decision, the Executive Council of New Hampshire voted against a contentious proposal to authorize the issuance of up to $100 million in revenue bonds supported by Bitcoin, tied to the cryptocurrency mining company CleanSpark. During a meeting held on July 8, the council, comprising five members, decided in a narrow 3-2 vote to deny the initiative that required state approval for the New Hampshire Business Finance Authority to proceed with the financial transaction.
Details of the Proposal
The proposal, which appeared on the Executive Council’s agenda for the July session, sought to permit the Business Finance Authority to issue taxable revenue bonds for the NH CleanSpark Borrower Trust 2026-1. These funds were intended to facilitate the purchase of Bitcoin and to manage the related costs of bond issuance. After deliberations and a public hearing, significant concerns led to the rejection.
New Hampshire journalist Kevin Landrigan commented on social media, noting that council members who supported the proposal included Janet Stevens and Dave Wheeler, while three other members opposed it. This vote effectively halted a plan that supporters had touted as the first state-rated Bitcoin-backed bond issued via a U.S. state authority.
Background and Financial Structure
The Business Finance Authority had previously approved the bond structure back in November 2025, but the final approval was contingent on the council’s agreement and the governor’s endorsement. Under the proposed financial arrangement, a private entity linked to CleanSpark would have offered around $160 million in Bitcoin as security for the bonds, which were capped at $100 million. The collateral would have been stored in separate wallets monitored by BitGo, and a provision was included to trigger liquidation if the market value of the Bitcoin dipped below approximately $140 million.
Designed as limited-recourse obligations, the bonds would have allowed investors to claim only the posted Bitcoin and returns in the event of borrower default. Notably, the state government would not have been liable for any taxpayer resources or public assets as part of this transaction. Governor Kelly Ayotte had endorsed the initiative, believing it could foster new investment avenues for New Hampshire without endangering state finances.
Concerns and Skepticism
However, council members expressed skepticism regarding using a state-run authority for a financing structure so closely associated with the volatile cryptocurrency market. Earlier this year, Moody’s Ratings had assigned the bonds a provisional Ba2 rating, indicating they were below investment grade and fell within a speculative range. Concerns regarding Bitcoin’s price fluctuations, alongside the collateral liquidation process, were crucial factors in this assessment.
Despite the anticipated overcollateralization of 160% to protect bondholders, this rating highlighted substantial credit risk. As a result, even with the precautionary measures in place, there were no guarantees against potential financial setbacks.
Reactions and Future Implications
Following the rejection, New Hampshire House Majority Floor Leader Keith Ammon remarked on the decision’s implications, labeling it “an extremely short-sighted decision” and advocated for reconsideration of the initiative with a deeper understanding of its potential benefits. He cautioned that this decision might hinder future revenue for the Business Finance Authority, though the agency has yet to announce plans for a new hearing or a revised proposal.
This outcome has implications within the broader context of New Hampshire’s evolving stance on digital assets. The state previously endorsed a framework for such bonds in 2025 and even became the pioneer U.S. state to establish a strategic cryptocurrency reserve, allowing the state treasurer to invest a limited portion of public funds in qualifying digital assets. However, the failed vote on the CleanSpark bond does not negate the provisions of the state’s digital asset reserve law, which remains intact.
