New Hampshire snuffs out trailblazing state-government bitcoin bond effort
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New Hampshire has abandoned its plan to issue what would have been the first rated bitcoin-backed bond issued by a state government. The New Hampshire Executive Council voted 3-2 against moving forward with the bond, shutting down the project in its final approval stage. This decision came despite Moody’s Ratings assigning the bond a Ba2 rating just months earlier.
The proposed bond was to be issued by the state’s Business Finance Authority and would have supported a private-sector issuance of up to $100 million for CleanSpark, a Bitcoin mining and data center company. Advocates saw the initiative as a pioneering move to integrate cryptocurrency assets into state-backed finance, potentially opening up new avenues for public-private blockchain-related investments.
Opponents of the bond expressed concerns about the state's financial reputation and risk exposure, leading to the narrow rejection by the council. Keith Ammon, a crypto proponent and state representative, criticized the vote as short-sighted and indicated plans to revisit the issue, noting that future council elections could change the balance of votes.
This development highlights ongoing tensions between governments’ cautious approach to crypto-related financial instruments and efforts by advocates to mainstream digital assets in public finance. Although the initiative faltered in New Hampshire, interest in blockchain-based municipal finance products remains, and the outcome may influence similar proposals in other jurisdictions.