New Hampshire Business Finance Authority Plans About $100 Million in Bitcoin-Backed Municipal Bonds
According to Moody’s, the proposed New Hampshire Bitcoin-backed municipal bond has a provisional Ba2 rating, placing it in speculative grade and signaling substantial credit risk tied to the structure.
Moody’s Investors Service assigned a provisional Ba2 rating to the proposed roughly $100 million Bitcoin-backed bond tied to the New Hampshire Business Finance Authority, classifying it as speculative grade. The update reinforces earlier details that the bond uses Bitcoin as collateral and carries elevated risk due to the structure. Previous reporting on the deal said it requires 1.6x overcollateralization, includes forced redemption at 1.4x collateral coverage, and relies on BitGo cold storage custody for the pledged Bitcoin. The new Moody’s statement mainly confirms the provisional rating and its speculative-grade status rather than adding major structural changes.
- Bitcoin-backed bond: A bond secured by Bitcoin collateral, with repayment support linked to the value and possible liquidation of the pledged cryptocurrency.
- Ba2: A Moody’s credit rating below investment grade that indicates speculative quality and substantial credit risk.
- BitGo: A digital asset custody firm that provides institutional cryptocurrency storage, including cold storage held offline for security.