New Hampshire has turned down a plan to issue what would have been the first Bitcoin-backed municipal bond in the U.S. The state’s Executive Council voted 3-2 against it.
The proposal would have let the Business Finance Authority issue $100 million in taxable bonds to fund Bitcoin miner CleanSpark, without using taxpayer money. Supporters said this protected public funds, but some council members were worried about Bitcoin’s volatility and the state’s role in this kind of financing.
Under the proposal, CleanSpark would have borrowed the proceeds from the bond issue while pledging $175 million worth of Bitcoin as collateral. If the value of the collateral fell below $140 million, the Bitcoin would have been automatically sold to repay investors. Supporters, including Governor Kelly Ayotte, said taxpayers would not bear any financial risk because bondholders would be repaid by CleanSpark rather than the state.
However, opponents wondered if the deal really benefited the public. Council member Karen Liot Hill said she was not against Bitcoin itself, but thought the state should be careful before backing a financial product linked to such a volatile asset.
Moody’s gave the proposal a provisional Ba2 rating, reflecting Bitcoin’s price swings. Finance professor David Krause said that while the plan seemed to protect taxpayers, using Bitcoin as collateral was a big change from traditional municipal bond financing.
After the vote, BFA Executive Director James Key-Wallace said the authority is open to more questions and could bring the proposal back if the council wants to reconsider it later.
THE BLOCK: New Hampshire’s Executive Council voted to reject a proposal to have the state establish a $100 million bitcoin-backed bond deal with CleanSpark.
“It was an extremely short-sighted decision,” Rep. Keith Ammon commented. pic.twitter.com/y0Vsj7kQFn
— The Block (@TheBlockCo) July 10, 2026
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