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BondsMediumUpdated•Originally published 31 March 2026•Updated 1 April 2026•
1 min read

Moody's Rates New Hampshire's First Bitcoin-Backed Municipal Bond at Ba2

Key Facts

1Moody's Investors Service assigned a Ba2 rating to New Hampshire's first-of-its-kind bitcoin-backed municipal bond.
2The bond blends traditional debt with crypto volatility, offering investors yield plus potential upside tied to bitcoin collateral.
3The bond structure is designed to offer upside without exposing taxpayers to financial risk.

Moody's Investors Service has assigned a Ba2 rating to a $100 million bond issuance by the Business Finance Authority of the State of New Hampshire, marking the first bitcoin-backed municipal bond. This pioneering instrument blends traditional debt structures with Bitcoin (BTC) collateral, offering investors a fixed yield alongside potential upside from digital asset appreciation. To manage inherent volatility, the bond's structure incorporates a 1.60x collateral buffer and a 1.40x liquidation trigger to protect the financial position. Furthermore, investors in the Series A-2 tranche are entitled to 15% of any Bitcoin price appreciation after all principal and interest obligations are met. While the Ba2 rating is considered speculative-grade, it validates the framework for integrating digital assets into institutional municipal finance. This development signals a growing trend among U.S. state entities to explore hybrid financial products that leverage crypto market growth within a regulated environment.