New Hampshire, USA plans to issue $100 million in Bitcoin-backed municipal bonds, rated Ba2 by Moody's

According to Bloomberg, the New Hampshire Department of Business and Economic Affairs plans to issue municipal bonds backed by Bitcoin, with a total scale of approximately $100 million. This product has received a Ba2 rating from Moody's Investors Service (two notches below investment grade).

The principal and interest of the bonds will be repaid using funds generated from the Bitcoin collateral, providing additional returns when Bitcoin prices rise, and there are price-triggered liquidation clauses to ensure repayment; the related debt is not supported by state government credit or taxes.