Moody’s Gives Ba2 Rating to New Hampshire’s $100M Bitcoin Backed Bond Plan

Highlights:

• New Hampshire’s Bitcoin-backed municipal bond moved closer after Moody’s assigned it a provisional Ba2 rating.
• The proposed $100 million bond uses Bitcoin collateral instead of taxpayer funds for repayment.
• The deal could offer investors regulated Bitcoin exposure through a familiar municipal bond structure.

Municipal bonds are normally considered safe and stable investments, while Bitcoin is known for price swings and risk. New Hampshire is now trying to combine these two very different worlds. The U.S. state has moved closer to launching a first-of-its-kind Bitcoin-backed municipal bond after Moody’s Investors Service assigned a provisional rating to the proposed deal.

Moody’s assigned a provisional Ba2 rating on Tuesday to a planned bond deal worth up to $100 million. The bond is being developed through the New Hampshire Business Finance Authority. Although the rating is below investment grade, it still moves the project closer to market and gives investors a way to assess the risk.

🚨NEW: NEW HAMPSHIRE PLANS $100M BITCOIN-BACKED MUNICIPAL BONDS

The New Hampshire Business Finance Authority plans to issue around $100 million in municipal bonds backed by Bitcoin $BTC collateral, @Bloomberg reports.

The bonds have been rated Ba2 by Moody's, two notches below… pic.twitter.com/4JRejaaaPM

— BSCN (@BSCNews) April 1, 2026

How the Bitcoin-backed bond would work

This bond works differently from a normal government bond. In most cases, governments repay bonds through tax revenue or income from public projects. But this deal does not depend on taxpayer money.

Instead, Bitcoin backs the bond as collateral. If the borrower fails to repay, the BTC can be sold to pay investors. This keeps the risk away from taxpayers and the state, because repayment depends only on the Bitcoin behind the deal.

The Waverose Finance Project plans to issue the bond in two series, 2026A-1 and 2026A-2. Both will mature in 2029. NH Cleanspark Borrower Trust 2026-1 will provide the Bitcoin collateral. Meanwhile, CleanSpark will act as the main counterparty.

The structure includes several protections for investors. BitGo Bank & Trust will keep the Bitcoin in separate regulated cold storage wallets. If cash is needed to pay interest or repay the bond, BitGo Prime will sell the Bitcoin. Wave Digital Assets will manage daily operations, and RM Digital Finance will serve as backup if necessary.

The deal will also track the value of the Bitcoin collateral through a loan-to-value system. At the start, the Bitcoin must be worth 1.60 times the bond amount, giving investors a 60% safety buffer. If the value falls to 1.40 times the bond amount, the deal will trigger an early full repayment to protect investors.

Why Moody’s rating is important

Credit ratings matter a lot in the bond market because many big investors only buy bonds that have an official rating. Even though Ba2 is still seen as a risky rating, it gives investors a clear way to judge the bond and understand its risk level.

Moody’s called the rating provisional, which means it is not final yet. The agency has reviewed the bond’s structure, but it will give a final rating after the legal paperwork is finished and the bond is ready to launch. The New Hampshire Business Finance Authority first approved the idea last November and described it as the world’s first Bitcoin-backed municipal bond. 

At the time, Governor Kelly Ayotte supported the plan and said it could help bring new investment into New Hampshire without putting taxpayers at risk. “This is an innovative way to bring more investment opportunities to our state and position us as a leader in digital finance,” Ayotte said.

LATEST: 🇺🇸 New Hampshire's Business Finance Authority has approved a $100M municipal bond backed by Bitcoin collateral at 160%, creating the first structure of its kind at the US state level. pic.twitter.com/FHyFJZk8pI

— CoinMarketCap (@CoinMarketCap) November 19, 2025