New Hampshire’s Bitcoin Bond Initiative
On July 8, officials in New Hampshire will convene to discuss a significant initiative: a proposed $100 million bond supported by Bitcoin, as outlined in the Governor and Executive Council agenda. This proposal is managed under the auspices of the state’s Business Finance Authority (BFA), which had previously given its endorsement to the bond structure back in November 2025. The bonds, which are taxable revenue ones, aim to provide financial backing for the NH CleanSpark Borrower Trust 2026-1—a New Hampshire-based investment trust specifically focused on Bitcoin. Funds raised through these bonds are intended to finance the acquisition of Bitcoin and cover associated issuance costs.
Support from State Officials
Governor Kelly Ayotte has expressed her support for this initiative, emphasizing that it represents a forward-thinking approach to attracting investment to New Hampshire without endangering taxpayer money or state resources.
“This is an innovative way to bring more investment opportunities to our state and position us as a leader in digital finance,”
Ayotte stated after the BFA’s approval.
Financial Structure and Security
Additionally, the BFA has emphasized that this Bitcoin-backed municipal bond would not require any state financing. Instead, the BFA will facilitate the arrangement while the responsibility for repayments rests with the private borrower. To ensure the security of the Bitcoin collateral associated with the bonds, BitGo Trust Company has been designated as the custodian, managing the assets in regulated cold storage. Proceeds from the bonds will also contribute to a Bitcoin Economic Development Fund.
Risk Assessment and Expert Opinions
In a move highlighting the risk involved, Moody’s assigned the proposed bond a provisional Ba2 rating in March, categorizing it as below investment grade and indicating a credit risk tied to its structure. This rating reflects how traditional financial markets are adjusting to accommodate Bitcoin as collateral, as the bond will require borrowers to provide around 160% of its value in Bitcoin holdings.
April analysis by David Krause, a finance expert from Marquette University, raised eyebrows regarding the appropriateness of the bond as a tool for general public finance. He argued,
“While it may serve as a proof of concept for marrying digital assets with structured finance, it’s not necessarily suited to broader financial applications.”
New Hampshire’s Digital Asset Policy
The forthcoming hearing is part of New Hampshire’s broader initiative to pioneer a more progressive digital asset policy, having established itself as the first U.S. state to approve laws encouraging investment in Bitcoin and other digital assets. In 2025, the state sanctioned a law permitting the investment of up to 5% of state public funds into eligible digital assets with substantial market caps.
As for the outcome of the July 8 meeting, it remains uncertain, as final approval will hinge on the approval of Governor Ayotte and the five-member Executive Council.
