New Hampshire to issue Bitcoin-backed bonds with Moody's Ba2 rating

The New Hampshire Business Finance Authority plans to issue approximately $100 million in Bitcoin-backed municipal bonds, according to Bloomberg. The bonds have been rated Ba2 by Moody’s, two notches below investment grade, marking the first time the agency has rated a Bitcoin-collateralized bond. Principal and interest payments will be supported by revenue generated from the Bitcoin held as collateral. The bonds include a price-linked liquidation clause that triggers a forced sale of the collateral based on price fluctuations to protect repayments. The debt is not guaranteed by the taxing power of the state of New Hampshire. The New Hampshire Business Finance Authority is a public financial institution established to support the state's economic development.