New Hampshire is moving forward in digital finance as lawmakers get ready to discuss a plan to issue $100 million in Bitcoin-backed bonds. The proposal already has support from the state’s Business Finance Authority, and now the final decision is up to Governor Kelly Ayotte and the Executive Council. If they approve it, these bonds would be among the first state-backed financial products tied to Bitcoin, with the goal of keeping taxpayers safe from direct financial risk.
These bonds are different from regular municipal debt because private parties would provide Bitcoin as collateral instead of using state assets. Supporters think this approach could bring in new investment and show how digital assets can be used in public finance.
New Hampshire is once again First in the Nation! 🎉
Just signed a new law allowing our state to invest in cryptocurrency and precious metals. pic.twitter.com/ua9bawZKbM
— Governor Kelly Ayotte (@KellyAyotte) May 6, 2025
Governor Kelly Ayotte says the proposal is a chance for New Hampshire to lead in financial innovation without putting public money at unnecessary risk.
This proposal follows New Hampshire’s increasing support for digital assets. In 2025, the state became the first in the U.S. to set up a strategic Bitcoin reserve, letting up to five percent of some public funds be invested in approved digital assets.
Even with the excitement, financial experts are urging caution. David Krause, an emeritus associate professor of finance at Marquette University, said the proposal could be a useful test case but warned that Bitcoin’s price swings make these bonds a poor choice for general public financing.
Krause pointed out that since the private company CleanSpark would supply the Bitcoin collateral, taxpayers would not be directly affected if prices change a lot. Still, he thinks this setup is more complicated and risky than regular municipal bonds.
These concerns are shown in the bond’s provisional Ba2 rating from Moody’s, which puts it in the speculative-grade category.
People are also comparing this proposal to El Salvador’s ambitious but unfinished “Volcano Bonds,” which were meant to fund Bitcoin City but never launched after the crypto market downturn.
If New Hampshire goes ahead with these bonds, the state could become a test case for bringing digital assets into public finance. If it works, other governments might try similar ideas, but if there are problems, it could make people more cautious about using volatile assets for public funding.
The upcoming hearing is therefore being closely watched by both the crypto industry and public finance experts, who see it as another milestone in the gradual convergence of blockchain technology and conventional capital markets.
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