New Hampshire Launches First $100M Bitcoin-Backed Municipal Bond

The US State of New Hampshire has introduced a $100 million Bitcoin-backed municipal bond, marking the first instance of such an initiative. Companies in the state can now borrow against over-collateralized BTC held by a private custodian.

The Business Finance Authority (BFA) approved this on November 17, despite a 25% correction in Bitcoin's price from its all-time high.
The bond is not backed by the state or taxpayers; BFA approves and oversees the transaction but does not assume repayment risk.
Investor protection comes through Bitcoin custody by BitGo.
Governor Kelly Ayotte supports the initiative, noting its potential to attract investments without risking public funds.

Details of New Hampshire’s Bitcoin Bond

Wave Digital Assets, in partnership with Rosemawr Management, structured the bond to connect digital assets with traditional debt markets.
Bitcoin will serve as collateral under existing bond regulations.
Borrowers must post approximately 160% of the bond's value in Bitcoin as collateral, with automated liquidation if it falls below 130%.
This model allows capital access without selling Bitcoin or incurring tax events.
Fees and any appreciation in Bitcoin collateral will fund the Bitcoin Economic Development Fund to support state economic growth.
This approach could set a precedent for other states if successful, potentially opening a new debt market.