Bitcoin-Backed Muni Bond Clears Hurdle With Moody’s Rating (1)

The riskiest asset class is converging with one of the safest in a first-of-its-kind financial product: A Bitcoin-backed municipal bond.

The New Hampshire Business Finance Authority’s plans for such a security — which they say is unprecedented — earned a Ba2 rating from Moody’s Investors Service on Tuesday. That’s the second-highest level of speculative grade.

Bitcoin mining and data center company CleanSpark will borrow the proceeds and deposit the Bitcoin collateral into a trust, from which bond payments will be made.

A ratings action brings the novel idea one step closer to reality. The New Hampshire conduit is aiming to ...