Moody's Ratings has assigned a provisional Ba2 rating to up to $100 million in bitcoin-backed taxable revenue bonds to be issued by the Business Finance Authority of the State of New Hampshire. The bonds, split into Series 2026A-1 and Series 2026A-2, both due in 2029, are tied to the Waverose Finance Project and secured by bitcoin held as collateral. The borrower is NH Cleanspark Borrower Trust 2026-1, with the state authority acting as lender in the underlying loan structure.
Bond Structure and Terms
Each class carries a fixed coupon. Holders of Series A-2 bonds may also receive additional payments at maturity if bitcoin's value has appreciated since the pricing date, but only after all principal, interest, and expenses are fully paid. The bonds are limited recourse obligations, meaning no New Hampshire public funds or taxing power backs them. Repayment depends solely on proceeds from the bitcoin collateral.
Bitgo Bank & Trust, National Association will hold the bitcoin in segregated wallets on behalf of bondholders. Bitgo Prime, LLC will serve as the liquidation agent, responsible for selling BTC to cover interest, principal, and expenses when required. Wave Digital Assets LLC will handle day-to-day transaction administration. RM Digital Finance LLC is set to be appointed at closing as a backup administrator to maintain operations if Wave Digital steps back.
Collateral Valuation and Risk Mitigation
The deal includes a collateral valuation mechanism tied to loan-to-value (LTV) thresholds. Initial coverage is set at 1.60x, with a LTV trigger at 1.40x. If collateral value drops to that trigger, a mandatory full redemption of the bonds is required. Moody's analysis used an advance rate of 72.06% and a two-day exposure period, both consistent with a Ba2 rating. These figures reflect bitcoin's historical price volatility and market liquidity conditions.
Moody's acknowledged that effective liquidation depends on the Bitcoin network continuing to function and market infrastructure remaining operational. The network has historically maintained continuous uptime with no significant wide-scale outages. The methodology applied is Moody's “Market Value Collateralized Loan Obligations,” published in May 2025.
Rating Implications and Industry Impact
Factors that could move the ratings include changes in collateral performance, issuer compliance with transaction documents, and how well liquidation mechanics hold under stress. A pre-sale report with additional transaction details is expected to be published on Moodys.com. The ratings were issued by Moody's Investors Service, Inc., New York office, with Sumeet Sablok as analyst and Leon Mogunov as associate managing director.
The deal marks a notable moment in U.S. municipal finance, where a state authority has used a digital asset as the sole backing for publicly issued bonds. Its performance will likely determine whether similar structures emerge elsewhere. The successful execution could pave the way for broader adoption of cryptocurrency collateral in public finance, while risks such as bitcoin's volatility and regulatory uncertainty remain key considerations.