Moody’s Ratings has assigned a provisional Ba2 rating to the first-ever Bitcoin-backed bonds issued by a US state. The $100mn debt instruments support New Hampshire’s push into digital assets after it became the first state to establish a Strategic Bitcoin Reserve, a state-level treasury holding Bitcoin as a long-term asset.
Moody’s Assigns Ba2 Rating to New Hampshire’s Bitcoin-Backed Bonds
1 April 2026 - 08:47 CEST
Moody’s is one of the world’s three major credit rating agencies. It assesses the creditworthiness of bonds and issuers. A Ba2 rating is considered speculative or junk grade. It signals that the bonds carry moderate credit risk, higher than investment-grade bonds but still within a range that some institutional investors can buy. The rating reflects Moody’s view on the likelihood of default and the quality of the Bitcoin collateral backing the bonds.
The ratings cover two classes of taxable revenue bonds backed by Bitcoin, issued by the Business Finance Authority of New Hampshire. The initial total balance is $100mn.
New Hampshire leads the way
The validation by a major ratings agency is a significant step in bridging traditional capital markets with the digital asset ecosystem. New Hampshire led the way in May 2025 by authorising small portions of public funds to be invested in Bitcoin and precious metals. Texas has since followed, and several other states are advancing similar Bitcoin reserve bills.
The state described the issuance as a world first. Companies involved include Wave Digital Assets, a digital asset structuring firm, in partnership with Rosemawr Management, a New York-based investment manager, and BitGo Trust, a leading regulated crypto custodian. BitGo Trust serves as custodian for the Bitcoin collateral, holding it in regulated cold storage with multi-layer security.
Advance rate provides bondholder buffer
Moody’s noted that BitGo will hold the Bitcoin collateral in segregated wallets with controls to mitigate commingling, the mixing of client assets with the custodian’s own funds or other clients’ assets, and operational risks. The provisional rating includes a 72% advance rate, a risk-management metric that defines the maximum amount of cash a borrower can receive relative to the value of their Bitcoin collateral.
This advance rate provides a safety cushion for bondholders, allowing Bitcoin’s price to drop significantly before the collateral value falls below the outstanding debt. Moody’s said the rate reflects its assessment of Bitcoin’s historical volatility and liquidity.
