Moody’s Rates $100M Bitcoin-Collateralized Revenue Bonds
According to the release from Moody’s shared with Bitcoin.com News, the bonds, split into two classes, Series 2026A-1 and Series 2026A-2, both due in 2029, are tied to the Waverose Finance Project and are backed by bitcoin held as collateral. The borrower is NH Cleanspark Borrower Trust 2026-1, and the state authority serves as the lender in the underlying loan structure.
Each class carries a fixed coupon. Holders of Series A-2 bonds may also receive additional payments at maturity if bitcoin’s value has appreciated since the pricing date, but only after all principal, interest, and expenses are fully paid. The bonds are limited recourse obligations. No New Hampshire public funds back them, and the issuer holds no taxing power to cover any payment shortfall. Repayment depends entirely on proceeds from the bitcoin collateral.
Bitgo Bank & Trust, National Association will hold the bitcoin in segregated wallets on behalf of bondholders. Bitgo Prime, LLC will serve as the liquidation agent, responsible for selling BTC to cover interest, principal, and expenses when required. Wave Digital Assets LLC will handle day-to-day transaction administration. RM Digital Finance LLC is set to be appointed at closing as a backup administrator to keep operations running if Wave Digital steps back.
The deal includes a collateral valuation mechanism tied to loan-to-value thresholds. Initial coverage is set at 1.60x, with an LTV trigger at 1.40x. If collateral value drops to that trigger point, a mandatory full redemption of the bonds is required. Moody’s used an advance rate of 72.06% and a two-day exposure period in its analysis, both consistent with a Ba2 rating. Those figures reflect bitcoin’s historical price volatility and market liquidity conditions.
The ratings firm acknowledged that effective liquidation depends on the Bitcoin network continuing to function and market infrastructure remaining operational. It noted the network has historically maintained continuous uptime with no significant wide-scale outages. The methodology applied was Moody’s “Market Value Collateralized Loan Obligations,” published in May 2025.
Factors that could move the ratings include changes in collateral performance, issuer compliance with transaction documents, and how well liquidation mechanics hold under stress. A pre-sale report with additional transaction details is expected to be published on Moodys.com. The ratings were issued by Moody’s Investors Service, Inc. out of its New York office, with Sumeet Sablok listed as analyst and Leon Mogunov as associate managing director.
The deal marks a notable moment in U.S. municipal finance, where a state authority is using a digital asset as the sole backing for publicly issued bonds. Whether it opens a path for similar structures elsewhere will depend on how this one performs.
FAQ 🧭
- What is the Waverose Finance Project bond deal? It is a $100 million bitcoin-backed revenue bond issuance by the Business Finance Authority of New Hampshire, rated provisionally Ba2 by Moody’s.
- Who holds the bitcoin collateral securing these bonds? Bitgo Bank & Trust, National Association holds the bitcoin in segregated wallets, with Bitgo Prime, LLC acting as liquidation agent.
- What triggers a mandatory redemption of the bonds? If the bitcoin collateral value falls to the 1.40x LTV trigger threshold, a full mandatory redemption of the bonds is required.
- Are New Hampshire taxpayers liable if the bonds default? No, the bonds are limited recourse obligations backed only by bitcoin collateral, with no public funds or state taxing power involved.
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