Picture this: a borrower needs capital but refuses to sell their Bitcoin stack. Selling would trigger taxes, crash their cost basis, and feel like capitulating after years of holding. What if they could simply pledge those coins as collateral and still raise millions — without the state ever touching taxpayer money?
That scenario just moved from wishful thinking to reality in the quiet hills of New Hampshire.
The Quiet Revolution in Public Finance
On November 17, 2025, New Hampshire’s Business Finance Authority signed off on something no American state has ever done: a $100 million conduit bond backed exclusively by Bitcoin. It’s not a pilot program or a proof-of-concept. It’s live, fully approved, and already being shopped to institutional borrowers.
I’ve followed crypto adoption stories for years, but this one hits differently. Most “institutional adoption” headlines are about ETFs or corporate treasuries. This is a government entity creating an entirely new debt instrument built around Bitcoin’s unique properties. And they did it without putting a single taxpayer dollar at risk.
How the Structure Actually Works
Let me break down the mechanics because they’re surprisingly elegant.
- Borrower wants to raise, say, $50 million.
- They deposit roughly 160% of that amount in Bitcoin with BitGo (yes, the same custodian used by half the spot ETFs).
- The Business Finance Authority issues the bond as a conduit — meaning the state only facilitates, never guarantees repayment.
- If Bitcoin’s price drops and collateral falls below ~130% loan-to-value, automatic liquidation kicks in to protect bondholders.
- Any excess collateral appreciation? It flows into New Hampshire’s Bitcoin Economic Development Fund.
In plain English: the borrower unlocks liquidity without selling (and without the IRS knocking), bond investors get a familiar municipal-style instrument with crypto upside, and the state collects fees plus any leftover gains — all while taking zero credit risk.
“This isn’t just one transaction — it’s the opening of a new debt market.”
– Les Borsai, co-founder of Wave Digital Assets
Why New Hampshire Keeps Winning the Crypto Race
This isn’t their first rodeo. Earlier in 2025, Governor Kelly Ayotte signed the nation’s first state-level Strategic Bitcoin Reserve into law. The rules are strict — only assets with >$500 billion market cap qualify, which right now means Bitcoin and Bitcoin alone.
Think about the symbolism. The state whose license plates read “Live Free or Die” now runs both a government Bitcoin treasury and a Bitcoin-collateralized lending facility. That’s not coincidence; that’s ideology meeting opportunity.
Rep. Keith Ammon, who championed the reserve legislation, told reporters the bond program lets companies “unlock capital without triggering taxable events.” Translation: HODL culture just received official state sanction.
The Bigger Picture Nobody Is Talking About
Step back for a second and look at the numbers. The global bond market is roughly $140 trillion. The U.S. municipal segment alone sits at $58 trillion. Even if Bitcoin-backed deals capture 0.1% of that market over the next decade, we’re talking hundreds of billions in new lending capacity.
And the beauty is the asymmetry:
- Bond buyers get senior, over-collateralized claims.
- Borrowers avoid forced selling during bear markets.
- Custodians and arrangers earn fees.
- States collect economic development dollars from appreciation.
It’s one of those rare moments where every participant wins. That’s why I believe this structure will spread faster than most analysts expect.
Who Actually Benefits First?
Early candidates are obvious:
- Publicly traded companies sitting on large Bitcoin treasuries (think the next MicroStrategy-type player).
- Family offices that bought BTC below $20k and refuse to sell.
- Even Bitcoin mining companies that need capex financing without diluting shareholders.
Imagine a miner posting 1,000 BTC as collateral, raising $60 million for a new facility, and never selling a single coin. That’s not theoretical anymore — the template exists today in Concord, New Hampshire.
The Risk Conversation Everyone Skips
Critics will scream “volatility!” and they’re not wrong — Bitcoin can swing 30% in a weekend. But the structure accounts for exactly that. The 160% initial collateral and 130% maintenance margin aren’t arbitrary; they were stress-tested against the worst drawdowns in Bitcoin’s history.
Remember March 2020? Bitcoin fell 50% in 48 hours. Even then, this structure would have required liquidation only below ~80% over-collateralization — giving plenty of buffer before bondholders felt pain.
Plus, BitGo isn’t some random custodian. They insure collateral, segregate keys, and already manage tens of billions for the largest institutions on earth. The operational risk is lower than most people assume.
What Happens Next
Several states are reportedly watching closely. Texas, Wyoming, and Florida have pro-crypto legislatures and large untapped muni markets. If even one follows New Hampshire’s blueprint in 2026, we’ll see a domino effect.
Meanwhile, the Blockchain Basic Laws Act — which just passed New Hampshire’s House — would add mining protections, node operator immunity, and self-custody rights. Combined with the reserve and now the bond program, the state is building something that looks suspiciously like a crypto regulatory moat.
Perhaps the most interesting aspect? None of this required Congress. No new federal laws, no SEC rulemaking, no presidential executive order. Just a state saying: “We see the future, and we’re building the on-ramp.”
I’ve been in this industry long enough to know that real adoption rarely announces itself with fanfare. It shows up in boring government documents, municipal bond prospectuses, and state treasury reports.
New Hampshire just filed one of those documents. And whether you’re a Bitcoin maximalist, a skeptical bond trader, or just someone curious about where money is heading — you should probably pay attention.
Because the granite state didn’t just issue America’s first Bitcoin-backed bond.
They just proved the future of finance can start in a state with fewer than 1.4 million people — if those people are willing to think differently.
