The proposal centers on the NH CleanSpark Borrower Trust 2026-1, an investment vehicle designed to finance Bitcoin acquisitions. Under the current framework, the state’s Business Finance Authority acts as a facilitator rather than a backer, shifting repayment obligations to the private borrower. Governor Kelly Ayotte has championed the initiative, framing it as an opportunity to establish the state as a hub for digital finance innovation.
Despite the state's optimism, financial analysts remain cautious. Moody’s assigned the bond a provisional Ba2 rating in March, placing it below investment grade due to the significant price swings associated with Bitcoin. To mitigate this credit risk, the structure requires borrowers to post collateral amounting to 160% of the bond’s total value. BitGo Trust Company is slated to manage these assets within regulated cold storage.
Academic scrutiny persists regarding the viability of such instruments. David Krause, an emeritus associate professor of finance at Marquette University, noted that while the deal serves as a proof of concept, it lacks the stability required for general-purpose public finance. The July hearing represents a critical hurdle for the project, which ultimately requires the endorsement of the Governor and the five-member Executive Council to proceed.
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