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Moody’s Gives Provisional Ba2 to New Hampshire’s First Bitcoin-Backed Muni Bond

The provisional grade signals a test of bitcoin as collateral in public debt markets.

Overview

  • Moody’s assigned a provisional Ba2 rating Tuesday to a proposed $100 million bond from the New Hampshire Business Finance Authority.
  • The bonds would be the first municipal issue secured by bitcoin, with BitGo safeguarding the collateral and selling coins to make payments if needed.
  • The structure opens with about 1.6x collateral and includes loan-to-value triggers that force redemptions if bitcoin’s price falls.
  • Moody’s cited bitcoin’s volatility and modeled roughly a 72% advance rate with a two-day window to liquidate collateral.
  • The sale still depends on final legal documents and pricing, and the speculative grade points to high-yield and crypto-focused buyers rather than mainstream muni funds.