Overview
- Moody’s issued a provisional Ba2 rating Tuesday to a proposed $100 million bond from New Hampshire’s Business Finance Authority that would be backed by bitcoin.
- Repayment would come from selling bitcoin held in custody by BitGo if cash is needed for interest or principal payments.
- The structure requires about 1.6 times more bitcoin than the loan amount and includes loan‑to‑value triggers that force liquidation if prices fall.
- Moody’s cited bitcoin’s price swings in assigning a speculative rating after modeling a 72% advance rate and short windows to liquidate collateral.
- The bonds are limited recourse, place no taxpayer funds at risk, and remain pending final legal sign‑offs and pricing, which could influence how many institutions can buy them.