Key facts
- New Hampshire is considering a $100 million Bitcoin-backed bond.
- The state's Business Finance Authority approved the bond in November 2025.
- Governor Kelly Ayotte supports the bond as an innovative investment opportunity.
- A finance professor warned of substantial risk but noted no recourse to state funds.
- Moody's assigned the bond a speculative 'Ba2' rating.
New Hampshire lawmakers are scheduled to hold a hearing on a proposed $100 million Bitcoin-backed bond, a move that could make the state the first in the U.S. to issue such a financial instrument. The state's Business Finance Authority (BFA) approved the bond in November 2025, and it awaits approval from Governor Kelly Ayotte and the executive council. Governor Ayotte has expressed support, calling it an innovative way to attract investment without risking state funds or taxpayer dollars. This initiative follows New Hampshire's May 2025 law establishing a strategic Bitcoin reserve, allowing up to 5% of public funds to be invested in digital assets. However, finance professor David Krause noted that while the bond offers no recourse to state funds, it introduces substantial risk due to Bitcoin's volatility. Moody's assigned the bond a speculative 'Ba2' rating. El Salvador's similar 'Volcano Bond' proposal in 2022 did not materialize.