The New Hampshire Secretary of State has announced that state lawmakers will publicly review a $100 million Bitcoin-backed bond proposal. The plan highlights a pioneering step in the use of digital asset-backed financial instruments in public sector fundraising, potentially setting a precedent for similar initiatives in the United States.
$100 million bond proposal on the agenda
According to an update added to the agenda of Governor Kelly Ayotte and the state’s Executive Council, the Business Finance Authority will meet Wednesday to discuss the issuance. The body originally approved the framework in November 2025, stating that the bond offering could move forward pending final approval from the governor and the five-member executive council.
Kelly Ayotte commented that, if approved, the move could bring new investment opportunities to the state and help position New Hampshire as a leader in digital finance. She further emphasized that the structure was specifically designed to avoid putting state funds or taxpayer resources at risk.
Kelly Ayotte said this initiative could open up more investment possibilities for the state, thrust New Hampshire to the forefront of digital finance, and do so without endangering public funds.
Ayotte, who is currently serving as governor, has spearheaded the administration’s recent focus on digital assets—a shift reflecting a more progressive policy framework in New Hampshire regarding emerging financial technologies.
Strategic Bitcoin reserve law drew national attention
In May 2025, New Hampshire became the first US state to enact a law establishing a strategic Bitcoin reserve. The legislation allows up to 5% of public funds to be invested in digital assets with a market capitalization exceeding $500 billion—a threshold that, in practice, focuses largely on Bitcoin.
Unlike traditional municipal bonds, the proposed structure uses Bitcoin as collateral—a move considered noteworthy for integrating digital assets into structured public finance. However, volatility risks associated with the digital asset market have sparked cautious analysis among industry observers.
Experts caution on digital bond structure
David Krause, a retired finance professor from Marquette University, assessed the proposal in April. He stated that while the structure is innovative, it nonetheless carries significant risks. Krause noted that funds required for collateral would be provided by private borrower CleanSpark, ensuring no direct liability for the state’s budget or taxpayers.
Mini glossary: A speculative grade refers to debt instruments rated as carrying higher credit risk. Such ratings signal to investors that repayment capacity may be more vulnerable to economic conditions.
David Krause highlighted that although the bond could serve as an example of digital assets in structured finance, it does not appear well-suited as a general-purpose public finance instrument.
Ratings agency Moody’s assigned a provisional Ba2 speculative grade to the Bitcoin bond proposal in March, classifying it among instruments carrying significant credit risk.
El Salvador’s precedent failed to deliver results
The concept of a Bitcoin-backed bond was previously floated in El Salvador. If New Hampshire’s issuance proceeds, the state would be among the first in the US to adopt such a model; however, earlier attempts elsewhere failed to materialize tangible outcomes.
During President Nayib Bukele’s tenure, El Salvador had announced plans for $1 billion in Bitcoin-backed “Volcano Bonds” to fund a proposed Bitcoin City, but the project was shelved in 2022 amid a downturn in cryptocurrency markets.
