The state government would rather miss out on 175 million BTC collateral than touch volatility; CleanSpark’s plan was designed to be fairly conservative, yet it was still rejected—the road to compliance for crypto financing is still long.

According to Bloomberg, the New Hampshire Executive Council has vetoed a Bitcoin-backed municipal bond issuance proposal, declining to approve the state's Business Finance Authority to issue $100 million in taxable municipal bonds via private placement. Under the proposal, the borrower is Bitcoin miner CleanSpark, which would provide $175 million worth of Bitcoin as collateral. If the collateral value falls below $140 million, liquidation would be triggered. The bond's principal and interest are fully covered by the Bitcoin collateral, involving no public funds or taxpayer money. Opposing council members argued that the proposal failed to bring direct infrastructure benefits to the state, and that the state government should not endorse financing related to high-volatility crypto assets.