New Hampshire issues first rated bitcoin-backed bond with Ba2 rating
- The New Hampshire Business Finance Authority plans to issue the first rated bitcoin-backed bond.
- The bonds received a provisional Ba2 rating from Moody’s, indicating speculative-grade status.
- They are backed by bitcoin valued at $68,154.60 held in custody by BitGo.
- Bondholders will be repaid through liquidation of the collateralized BTC.
- The deal includes a safeguard of overcollateralization at a ratio of 1.6x and liquidation triggers based on loan-to-value ratios.
This bond issuance represents a significant integration of crypto into public finance, with no state funds at risk for repayment under the rated bonds.
With a Ba2 rating, this innovative financial instrument demonstrates how institutions are exploring new uses for bitcoin, moving beyond traditional trading or treasury roles.
