$100M Bitcoin-Backed Bond Proposal Set for Legislative Hearing in New Hampshire
Cryptocurrency-backed bonds awaiting final green light from state officials, including Governor Kelly Ayotte and New Hampshire's executive council comprised of five members.
State lawmakers in New Hampshire are preparing to examine a proposal for issuing Bitcoin (BTC)-backed bonds worth $100 million during an upcoming public hearing, according to an announcement from the Secretary of State's office.
According to a recently published agenda update for New Hampshire's governor and executive council, the state Business Finance Authority (BFA) has set Wednesday as the date for a meeting to address the proposed $100 million bond issuance backed by BTC. Following the BFA's November 2025 approval of the bond, the authority indicated its intention to move forward with issuing these financial instruments pending authorization from both Governor Kelly Ayotte and the executive council consisting of five members.
This is an innovative way to bring more investment opportunities to our state and position us as a leader in digital finance without risking state funds or taxpayer dollars.
Governor Kelly Ayotte
The state's pursuit of these substantial Bitcoin-backed bonds represents New Hampshire's strategic shift toward more accommodating digital asset regulations. In May 2025, New Hampshire became the nation's first state to enact legislation creating a strategic Bitcoin reserve, which grants the government authority to allocate 5% of public funds toward digital assets that maintain market capitalizations above $500 billion.
In contrast to conventional municipal bonds, BTC-backed bonds represent an innovative form of financial instrument that may also bring "substantial risk," according to David Krause, who serves as an emeritus associate professor of finance at Marquette University. In an April analysis examining the proposed bond, Krause noted that despite a private borrower, CleanSpark, providing the collateral funding, this structure provides "no recourse to state funds or taxpayers."
While the bond may serve as a proof of concept for integrating digital assets into structured finance, it is not well suited as a general-purpose public finance tool. Its primary significance lies in highlighting the challenges of adapting traditional financial frameworks to highly volatile digital assets.
David Krause, emeritus associate professor of finance at Marquette University
During March, Moody's issued a provisional Ba2 rating for the Bitcoin bond, placing it within the company's "speculative grade" classification for financial instruments carrying substantial credit risk.
El Salvador's Bitcoin-backed bond project fizzled out
While New Hampshire could potentially become among the earliest US states to launch Bitcoin-backed bonds, this concept previously received attention in El Salvador.
During the administration of President Nayib Bukele, who had also championed legislation that subsequently made Bitcoin legal tender throughout the country, the Salvadoran government revealed plans for $1 billion in Bitcoin-backed "Volcano Bonds" intended to finance a proposed Bitcoin City project. First announced in 2022, the initiative ultimately failed to materialize after the cryptocurrency market experienced a significant downturn.