Moody’s Assigns Ba2 Rating to Bitcoin-Backed Bonds
- Moody’s rated a $100 million revenue bond, backed by bitcoin, provisionally at Ba2.
- The bonds, Series 2026A-1 and Series 2026A-2, are due in 2029 and linked to the Waverose Finance Project.
- Bitcoin collateral is held by Bitgo Bank & Trust in segregated wallets.
- A mandatory redemption of the bonds is triggered if collateral value falls to a loan-to-value (LTV) threshold of 1.40x.
- New Hampshire taxpayers are not liable for these bonds, as they are limited recourse obligations backed solely by bitcoin.
This bond issuance marks a significant moment in U.S. municipal finance, utilizing digital assets as sole backing for publicly issued bonds without public fund involvement or state taxing power.
The Ba2 rating reflects bitcoin’s historical price volatility and market liquidity conditions, with repayment contingent on the bitcoin collateral’s performance. (Source)
