New Hampshire Council Blocks Bitcoin-Backed Bond Proposal Worth Up to $100 Million

The New Hampshire Executive Council has voted against a proposal that would have enabled the issuance of up to $100 million in taxable conduit revenue bonds backed by bitcoin, halting an initiative designed to finance a private crypto-related project.

The measure was rejected in a narrow 3-2 vote during Wednesday's council meeting. If approved, the New Hampshire Business Finance Authority would have acted as the conduit issuer for bonds intended to support a private borrower associated with bitcoin mining firm CleanSpark.

To secure the financing, the proposed arrangement required approximately $160 million worth of bitcoin to be pledged as collateral. The structure included safeguards requiring the bonds to be redeemed if the value of the collateral dropped below $140 million. Digital asset custodian BitGo was selected to hold the bitcoin in segregated wallets throughout the life of the bonds.

Supporters emphasized that the bonds were structured as limited-recourse obligations, meaning investors could only seek repayment from the pledged bitcoin and related proceeds. Under the proposal, neither New Hampshire taxpayers nor the state's general credit would have been exposed to financial liability.

Governor Kelly Ayotte backed the initiative, describing it as an innovative financing model capable of attracting investment to the state without placing public funds at risk. Advocates argued the proposal could position New Hampshire as a leader in digital asset finance while preserving taxpayer protections.

Earlier this year, Moody's Investors Service assigned the planned bond issuance a Ba2 credit rating, classifying it as speculative-grade debt, two levels below investment-grade status.

Following the council's decision, State Representative Keith Ammon criticized the outcome, arguing that rejecting the proposal could limit future revenue opportunities for the New Hampshire Business Finance Authority and slow economic development. He called the vote short-sighted and urged council members to revisit the proposal after reviewing additional information.