Moody's Ratings has assigned a temporary Ba2 rating to up to $100 million in bitcoin-backed taxable revenue bonds to be issued by the New Hampshire Business Finance Authority, according to a press release shared with Bitcoin.com News on March 31, 2026. This marks a pioneering moment in U.S. municipal finance, where a state authority uses a digital asset as the sole collateral for publicly offered debt.
Bond Structure and Collateral Details
Dubbed the “Waverose Finance Project,” the bonds are split into two classes: Series 2026A-1 and Series 2026A-2, both maturing in 2029. The borrower is NH Cleanspark Borrower Trust 2026-1, and the state authority acts as the lender in the underlying loan structure. Each class carries a fixed coupon. Holders of Series A-2 bonds may additionally receive extra payment at maturity if the value of bitcoin has increased since the pricing date, but only after all principal, interest, and fees are fully paid.
These bonds are limited recourse obligations. No New Hampshire public funds or taxing power back them; repayment depends entirely on proceeds from the bitcoin collateral. Bitgo Bank & Trust, National Association will hold the bitcoin in segregated wallets for the bondholders. Bitgo Prime, LLC will serve as liquidation agent, responsible for selling BTC to cover interest, principal, and fees when required. Wave Digital Assets LLC will handle day-to-day transaction administration. RM Digital Finance LLC is expected to be appointed as backup administrator to keep operations running if Wave Digital withdraws.
LTV Triggers and Moody's Analysis
The deal incorporates a collateral valuation mechanism tied to loan-to-value (LTV) thresholds. Initial coverage is set at 1.60x, with an LTV trigger at 1.40x. If collateral value falls to that trigger point, mandatory full redemption of the bonds is required. Moody's used a 72.06% haircut and a two-day exposure period in its analysis, both consistent with the Ba2 rating. Those figures reflect Bitcoin's historical price volatility and market liquidity conditions.
The rating agency acknowledged that effective liquidation depends on the Bitcoin network continuing to operate and market infrastructure remaining functional. The network has historically maintained sustained uptime without significant prolonged outages. The methodology applied is Moody's “Market Value Collateralized Loan Obligations,” published in May 2025.
Factors that could affect the rating include changes in collateral performance, the issuer's compliance with transaction documents, and how well the liquidation mechanism holds up under stress. A pre-sale report with additional transaction details is expected to be published on Moodys.com. The rating was issued by Moody's Investors Service from its New York office, with Sumeet Sablok listed as analyst and Leon Mogunov as associate managing director.
Market Significance and Outlook
This deal represents a watershed moment in U.S. municipal finance, where a state authority uses a digital asset as the sole collateral for publicly offered debt. Whether it paves the way for similar structures elsewhere will depend on how this one performs. The involvement of Moody's provides institutional validation, but the high volatility of bitcoin and the lack of taxpayer backing mean investors must carefully weigh risks. As crypto and traditional finance continue to converge, this transaction could become a template for future asset-backed municipal offerings.