Moody’s Ratings has assigned a provisional Ba2 rating to up to $100 million in bitcoin-backed taxable revenue bonds planned by the Business Finance Authority of the State of New Hampshire. The deal is tied to the Waverose Finance Project and is split into two classes, Series 2026A-1 and Series 2026A-2, both maturing in 2029. The borrower is NH Cleanspark Borrower Trust 2026-1, while the state authority serves as lender within the underlying loan structure.
Both bond classes carry fixed coupons. Holders of Series A-2 may also receive an extra payment at maturity if bitcoin has appreciated from the pricing date, but only after all principal, interest, and expenses have been paid in full. The bonds are limited recourse obligations. They are not backed by New Hampshire public funds, and the issuer has no taxing authority to cover any shortfall. Repayment depends entirely on proceeds from the bitcoin collateral.
Bitgo will custody the collateral and handle liquidation when needed
Moody’s said Bitgo Bank & Trust, National Association will hold the bitcoin in segregated wallets for bondholders. Bitgo Prime, LLC will act as liquidation agent and sell BTC when necessary to cover interest, principal, and expenses. Wave Digital Assets LLC will manage day-to-day transaction administration, and RM Digital Finance LLC is expected to be appointed at closing as backup administrator if Wave Digital steps away.
The transaction includes a collateral valuation framework tied to loan-to-value thresholds. Initial collateral coverage is set at 1.60x, and the LTV trigger is 1.40x. If collateral value falls to that trigger, the bonds must be fully redeemed. In its analysis, Moody’s used an advance rate of 72.06% and a two-day exposure period, saying those assumptions align with a Ba2 rating and reflect bitcoin’s historical price volatility and market liquidity conditions.
Rating depends on bitcoin network uptime and workable market infrastructure
Moody’s said effective liquidation relies on the Bitcoin network continuing to operate and on market infrastructure remaining available. The firm noted that the network has historically maintained continuous uptime without significant broad outages. The rating was based on Moody’s May 2025 methodology, “Market Value Collateralized Loan Obligations.”
Future rating movement could be influenced by changes in collateral performance, the issuer’s compliance with transaction documents, and the strength of liquidation mechanics under stress. A pre-sale report with added transaction detail is expected on Moodys.com. The rating was issued by Moody’s Investors Service, Inc. from its New York office, with Sumeet Sablok named as analyst and Leon Mogunov as associate managing director.
A public bond structure backed only by a digital asset
The structure stands out in U.S. municipal finance because a state authority is using a digital asset as the sole backing for publicly issued bonds. The source notes that whether similar structures appear elsewhere will depend on how this transaction performs. What is already clear is that New Hampshire taxpayers are not responsible if the bonds default, leaving recovery tied to the bitcoin collateral and the liquidation process around it.