Moody's Assigns Ba2 Rating to $100M Bitcoin-Backed New Hampshire Bonds
Moody's assigned a provisional Ba2 rating to $100 million of Bitcoin-backed revenue bonds issued through New Hampshire's Business Finance Authority, marking the first major agency rating for bonds collateralized by Bitcoin. The limited-recourse bonds due 2029 feature 1.60x initial overcollateralization, a 1.40x loan-to-value trigger, and a 72.06% advance rate.
1. Historic First Bitcoin-Backed Bond Rating
Moody's became the first major credit agency to rate bonds directly collateralized by Bitcoin, assigning a provisional Ba2 rating to a pair of Bitcoin-backed revenue bonds to be issued through the New Hampshire Business Finance Authority.
2. Bond Structure and Terms
The bonds carry a combined face value of up to $100 million and mature in 2029 under the Waverose Finance Project. Moody's applied a 72.06% advance rate, set initial overcollateralization at 1.60x, and established a loan-to-value trigger at 1.40x that mandates redemption if breached.
3. Limited-Recourse and Collateralization
As limited-recourse instruments, no New Hampshire public funds are at risk; repayment relies solely on Bitcoin held in custody by BitGo Bank & Trust. A drop in Bitcoin value to 1.40x the loan value will force mandatory liquidation to protect bondholders.
4. Strategic Implications for Moody's
This milestone underscores Moody's strategic expansion into digital finance and on-chain ratings, potentially creating a new revenue stream and establishing a benchmark for future crypto-collateralized debt offerings.