- New Hampshire’s Executive Council voted against a proposal to issue up to $100 million in Bitcoin-backed revenue bonds.
- The bonds would have been fully collateralized by approximately $160 million in Bitcoin, with no direct risk to taxpayers.
- Supporters say the decision could limit future crypto-related investment opportunities in the state.
New Hampshire has rejected a proposal that would have made it one of the first U.S. states to facilitate a large-scale Bitcoin-backed bond offering. The Executive Council voted 3-2 against authorizing up to $100 million in taxable conduit revenue bonds, halting a financing structure backed entirely by Bitcoin collateral.
The proposal was designed to support a private borrower affiliated with Bitcoin mining company CleanSpark while avoiding any direct financial exposure for New Hampshire taxpayers.
Bitcoin Would Have Fully Backed the Bonds
Under the proposed structure, the borrower planned to pledge approximately $160 million worth of Bitcoin as collateral for the bond issuance.
The agreement included built-in risk controls. If the value of the Bitcoin collateral fell below $140 million, the bonds would automatically be liquidated and redeemed to protect investors.
Digital asset custodian BitGo was selected to safeguard the Bitcoin in segregated wallets throughout the life of the transaction.
No Direct Risk to Taxpayers
The financing was structured as limited-recourse obligations, meaning bondholders would only have claims against the pledged Bitcoin and any related proceeds.
Neither the State of New Hampshire nor its taxpayers would have been responsible for repaying the bonds if the collateral proved insufficient. Instead, the New Hampshire Business Finance Authority would have acted solely as the conduit issuer for the private financing.
Supporters argued the arrangement could attract investment to the state without placing public funds at risk.
State Leaders Divided
Governor Kelly Ayotte publicly supported the proposal, describing it as an innovative financing model capable of bringing new investment opportunities to New Hampshire while protecting taxpayers.
However, a majority of the Executive Council voted to reject the plan, preventing the transaction from moving forward.
Earlier this year, Moody’s assigned the proposed bonds a Ba2 credit rating, classifying them as speculative-grade debt below investment-grade status.
Supporters Hope for Another Vote
Following the decision, State Representative Keith Ammon criticized the vote, arguing it could reduce future revenue opportunities for the Business Finance Authority and discourage innovative financing initiatives.
Ammon urged council members to reconsider the proposal at a future meeting after reviewing additional information, suggesting the discussion over Bitcoin-backed financing in New Hampshire may not be over.
Although the proposal failed this time, it highlights the growing interest among governments and financial institutions in exploring how Bitcoin can be used as collateral within traditional capital markets.
