The New Hampshire Business Finance Authority (BFA) is set to issue $100 million worth of bitcoin-collateralized bonds that carry a provisional Ba2 rating from Moody’s Investors Service — a speculative grade rating that places the instrument two notches below the lowest investment grade threshold and represents the first known example of a U.S. public authority issuing debt backed entirely by bitcoin.
And for municipal bond markets accustomed to state-level securities rated Aa or higher, Ba2 on a cryptocurrency-collateralized structure is not just a footnote – it is an indication that the world of a traditional buyer of cash is largely excluded, by mandate, before the first coupon cut.
🚨 New Hampshire issues first Bitcoin-backed bonds
The New Hampshire Business Finance Authority plans to issue what appears to be the first Moody’s-rated Bitcoin (Ba2)-backed bonds.
The bonds are backed by BTC held with BitGo and do not put the state’s public funds at risk. pic.twitter.com/svYLhbtIXp
— Currency Bureau (@coinbureau) March 31, 2026
We believe that the practical impact of the classification is more important than its headline suggests. Ba2 securities cannot be held by most municipal bond funds, pension systems operating under investment-grade fiduciary floors, or insurance company public accounts subject to NAIC capital charge rules — meaning the natural buyers here are local high-yield investors, hedge funds, and local fixed-income allocators, a materially different compliance situation than any previous New Hampshire public authority issuance.
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BFA Bond Structure: Bitcoin Collateral, Limited Recourse, and CleanSpark Connectivity
The bonds will be issued in two series — Series 2026A-1 and Series 2026A-2, both due in 2029 — with the balances of the individual classes not yet publicly disclosed, according to Moody’s statement Tuesday. Holders of Series 2026A-2 are entitled to an optional additional payment at maturity if the value of bitcoin rises sufficiently after covering principal, interest and expenses — a feature that offers asymmetric upside exposure not common in traditional fixed-income structures.
The primary borrower is NH Cleanspark Borrower Trust 2026-1, an entity associated with CleanSpark, a publicly traded bitcoin mining company, which is offering bitcoin as collateral for the loan. BitGo Bank & Trust will act as custodian, holding BTC in segregated wallets, and will also act as a clearing agent – responsible for converting Bitcoin to cash for service interest and principal payments when they fall due.
Importantly, the bonds are structured as limited return obligations, paid solely from the proceeds of Bitcoin collateral. There are no public funds to support the debt. The BFA acts as a lender in the underlying loan structure but assumes no public obligation, which protects New Hampshire taxpayers from any shortfall – although it also removes the implicit state credit backing that typically backs quasi-public authority securities.
The collateral arrangement launches at a coverage ratio of 1.60x – meaning that Bitcoin holdings must be worth 1.60 times the outstanding loan balance at inception. The mandatory full redemption of the bonds is triggered if this ratio deteriorates to 1.40x.
Moody’s applied an advance rate of 72.06% in its analysis, taking into account Bitcoin price fluctuations and assuming a two-day liquidation exposure window – a period during which BitGo will unwind Bitcoin positions deep in the market before full settlement takes place.
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Neil is a professional cryptocurrency content writer with years of experience. He has written for numerous cryptocurrency websites to report breaking news, and has been hired by all kinds of cryptocurrency projects, to create content that will increase their exposure and attract more potential investors.
