New Hampshire is taking another step in its growing embrace of digital assets, with state officials set to consider a proposed $100 million Bitcoin (BTC)-backed bond at a public hearing on Wednesday.
According to an update to the agenda of the governor and executive council, the New Hampshire Business Finance Authority (BFA) will discuss the planned bond issuance after approving the proposal in November 2025. The bond can only move forward with approval from Governor Kelly Ayotte and the state’s five-member Executive Council.
New Hampshire is set to hold a public hearing for a $100M Bitcoin-backed bond, marking a significant step in the state’s exploration of crypto as a legitimate investment option. The hearing will evaluate the bond’s approval, taxpayer safeguards, Moody’s rating, and BTC volatility…
— Ben Ben Ben (@BenRustC) July 8, 2026
Governor Ayotte previously described the proposal as a way to attract new investment opportunities while ensuring that state funds and taxpayer money remain protected.
What is the proposed Bitcoin-backed bond?
The proposed bond would be backed by Bitcoin rather than relying on traditional municipal financing structures. The collateral for the bond would be provided by Bitcoin mining company CleanSpark, meaning the state would not be responsible for supplying the backing assets.
The proposal marks another milestone in New Hampshire’s expanding crypto strategy. In May 2025, the state became the first in the United States to establish a strategic Bitcoin reserve, allowing up to 5% of public funds to be invested in digital assets with a market capitalization above $500 billion.
The latest bond proposal builds on that policy by exploring another way digital assets could be used within public finance.
Can Bitcoin-backed bonds work?
While the proposal has attracted attention, financial experts have urged caution.
David Krause, an emeritus associate professor of finance at Marquette University, said in an earlier analysis that the structure protects taxpayers because the Bitcoin collateral comes from a private borrower rather than the state.
However, he noted that Bitcoin’s price swings make the model difficult to use as a standard public financing tool. According to Krause, the proposal is better viewed as an experiment that tests how digital assets can fit into traditional financial markets.
Earlier this year, Moody’s assigned the proposed bond a provisional Ba2 rating, placing it in the speculative-grade category because of its higher credit risk.
How does it compare with earlier Bitcoin bond plans?
The proposal also revives an idea that previously gained international attention. In 2022, El Salvador revealed plans for $1 billion “Volcano Bonds” backed by Bitcoin to help finance its planned Bitcoin City project under President Nayib Bukele. The project, however, failed to launch after the cryptocurrency market entered a prolonged downturn.
If approved, New Hampshire’s proposal would become one of the first Bitcoin-backed bond issuances by a U.S. state, adding another chapter to the growing use of digital assets in public finance.
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