Granite State Gambles on Bitcoin: $100M Bond Plan Heads to Hearing

New Hampshire is set to become the first U.S. state to formally consider issuing debt denominated in cryptocurrency, as lawmakers have scheduled a public hearing on a $100 million Bitcoin bond proposal. The plan, introduced by a bipartisan group of legislators, would allow the state to raise capital by issuing bonds that pay interest and principal in Bitcoin rather than dollars.

How the Bonds Would Work

Under the draft legislation, the state would issue up to $100 million in bonds to institutional investors, with coupon payments and principal redemption denominated in Bitcoin at the prevailing market rate. Proceeds would be deposited into a state-managed digital asset fund and used to finance infrastructure projects, including broadband expansion and renewable energy upgrades. The proposal includes a mandatory hedging mechanism to protect against Bitcoin price volatility.

Key features of the plan include:

• Bond maturity of five to ten years with semi-annual Bitcoin-denominated coupon payments.
• A partnership with a federally insured custodian to hold the private keys.
• A requirement that the state treasurer liquidate a portion of the Bitcoin holdings if the price drops more than 20% in a single quarter.

Dueling Views on Fiscal Prudence

“This is either a visionary leap into the future of public finance or a reckless bet with taxpayer money,” said state Representative Sarah Lindstrom, a co-sponsor. “The hearing will give us the evidence to decide which.”

Opponents, including the New Hampshire Fiscal Policy Institute, argue that the plan exposes the state to unacceptable market risk and could undermine the stability of municipal bonds. Supporters counter that holding a small portion of state reserves in Bitcoin—roughly 1% of the state's annual budget—is a prudent diversification strategy that could yield significant returns if the cryptocurrency continues its long-term appreciation.

The hearing, scheduled for next month before the House Commerce and Consumer Affairs Committee, is expected to draw testimony from digital asset experts, municipal bond underwriters, and consumer advocates. If the bill advances, New Hampshire would join a handful of states exploring crypto-backed public finance, but none have yet issued bonds tied directly to Bitcoin.