My bond is the first of its kind Powered by Bitcoin It is close to issuance after receiving a sub-investment grade rating from Moody’s Investors Service, marking a major step in the convergence of digital assets and traditional public finance.
The proposed $100 million issuance, organized by the New Hampshire Business Finance Authority (BFA), received a Ba2 rating — two notches below investment grade, according to Bloomberg. Preparing reports.
If completed, the deal will represent the first municipal bonds backed by Bitcoin collateral, opening a potential new path for institutional capital to access the asset class through regulated fixed income markets.
Under the proposed structure, bond payments would be financed by proceeds generated by bitcoin collateral provided by the borrower Clean Spark. Investors will also have exposure to the upside, with additional payouts tied to a rise in Bitcoin’s price.
Meanwhile, downside protection is included in the deal. If the price of Bitcoin falls below a pre-determined threshold, the trust can be liquidated to repay bondholders in full.
Importantly, the bonds do not carry any taxpayer support.
“The public funds of the State of New Hampshire or any political subdivision thereof may not be used to pay amounts under the rated bonds,” Moody’s noted in its report, asserting that the issuer has no tax authority to cover any shortfall.
The main players behind the Bitcoin transaction
Digital asset company Wave Digital Assets will oversee transaction management, while BitGo will act as custodian of Bitcoin collateral, securing it in a regulated cold storage.
The structure was initially approved by the BFA Board of Directors in November 2025, making New Hampshire a potential leader in integrating Bitcoin into public finance markets.
Governor Kelly Ayotte supported the initiative at the time, calling it a way to attract investment without exposing taxpayers to risk.
“This is an innovative way to bring more investment opportunities to our state and position us as a leader in digital finance,” Ayotte said.
Volatility remains a major risk
The Ba2 rating underscores the fundamental tension at the heart of the product: the combination of one of the most volatile asset classes and one of the most traditionally safe.
Bitcoin has fell nearly 50% from its October 2025 peak near $126,000, highlighting the risks associated with volatility in the value of collateral. Over the same period, high-yield municipal bond indices posted modest positive returns, illustrating the contrast between the two asset classes.
However, proponents argue that the structure’s collateral model — and liquidation guarantees — could make bitcoin viable within conservative capital markets.
This deal is part of a broader effort by Wave and its partners to create a bridge between digital assets and traditional debt markets, allowing bitcoin to serve as collateral at the institutional level.
If successful, the issuance could create a model for future cryptocurrency-backed municipal or corporate debt offerings, effectively creating a new hybrid asset class.
“This is not just one deal, it is the opening of a new debt market,” Wave co-founder Les Boursay said when the structure was first unveiled.
Currently, the bonds do not have a confirmed pricing date. But with a taxonomy in place, the experiment with merging Bitcoin with municipal finance is entering a more realistic phase, one that could test whether traditional investors are willing to underwrite crypto risk for return and upside exposure.
