New Hampshire authority to issue $100 million bitcoin-backed bond with speculative-grade rating from Moody’s
New Hampshire will issue $100 million in bitcoin-backed bonds, receiving a speculative-grade “Ba2” rating from Moody’s.Summary
The New Hampshire Business Finance Authority is preparing to issue $100 million in bonds backed by bitcoin. Moody’s Investors Service has assigned a “Ba2” rating to these bonds, placing them in the speculative-grade category. The bonds will be structured into two classes and collateralized by a loan secured by bitcoin, with BitGo serving as the custodian and liquidation agent. Safeguard mechanisms are in place, including a loan-to-value (LTV) trigger at 1.40x with initial coverage at 1.60x, to ensure adequate collateralization. The bonds are structured as limited recourse obligations, meaning repayment relies solely on the bitcoin collateral and not public funds. This move reflects a growing trend of U.S. public entities exploring cryptocurrency adoption, following recent proposals allowing crypto in 401(k) plans.
(Source：The Block)