New Hampshire’s Executive Council blocked a plan to issue up to $100 million in Bitcoin‑backed revenue bonds tied to miner CleanSpark, voting 3-2 on July 8 to deny final state approval for the deal.
What was proposed
- The New Hampshire Business Finance Authority had cleared a structure in November 2025 that would let a private borrower related to CleanSpark sell taxable revenue bonds (NH CleanSpark Borrower Trust 2026‑1) to finance a $100 million Bitcoin purchase and cover issuance costs.
- Under the plan, the borrower would post roughly $160 million in Bitcoin as collateral, held in segregated wallets managed by custodian BitGo. If the collateral fell to about $140 million, the structure would trigger liquidation and bond redemption.
- The bonds were limited‑recourse: bondholders’ recovery would be limited to the Bitcoin collateral and related proceeds. State officials said no taxpayer funds, general credit, or other public assets would be pledged.
Why it failed
- The council’s 3-2 vote killed the transaction at the final review and public hearing stage. Governor Kelly Ayotte supported the deal, arguing it could attract new investment “without risking state funds or taxpayer dollars,” but a majority of councilors disagreed.
- Opponents raised concerns about using a state‑linked conduit for a Bitcoin‑backed financing and the risks tied to crypto price volatility and liquidation mechanics.
Credit view and risk
- Moody’s gave the proposed bonds a provisional Ba2 rating in March — a speculative‑grade score below investment grade — after reviewing two taxable series maturing in 2029. Moody’s analysis emphasized Bitcoin volatility and the collateral liquidation process as central credit risks.
- The proposed ~160% overcollateralization was intended to protect bondholders during market declines, but the Ba2 rating signaled material credit risk and did not guarantee protection against losses.
Reactions and next steps
- New Hampshire House Majority Floor Leader Keith Ammon called the council’s rejection “extremely short‑sighted” and urged reconsideration, warning the decision could reduce future fee revenue for the Business Finance Authority. The authority has not announced plans for a revised proposal or new hearing.
- The vote halts what proponents presented as the first rated Bitcoin‑backed conduit bond issued through a U.S. state authority, but it does not affect New Hampshire’s other crypto‑friendly measures. The state earlier authorized a strategic cryptocurrency reserve that allows the treasurer to invest a limited share of eligible public funds in qualifying digital assets; that law remains in force.
Bottom line
This setback highlights the political and credit‑market frictions that remain around state‑linked crypto finance, even in jurisdictions with pro‑crypto policies. The CleanSpark‑linked bond structure showed how traditional public finance tools are being repackaged for digital‑asset use — but volatility, custody and governance concerns can still derail deals at the final mile.
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