Kazakhstan orders big miners to feed new state Bitcoin reserve for cheaper power
New strategic mining regulations aim to strengthen the country's national digital asset holdings while offering miners long-term access to affordable electricity.
Kazakhstan has approved Government Resolution No. 638, requiring large-scale Bitcoin miners to hand over a share of their output to a new state-managed cryptocurrency reserve in exchange for capped-rate electricity, with the rules taking effect August 1.
The initiative reflects Kazakhstan’s broader strategy of combining energy policy with digital asset regulation to strengthen its position as a leading cryptocurrency hub across Eurasia.
Government links strategic mining to national crypto holdings
The centerpiece of the new policy is the expansion of the Kazakhstan crypto reserve, which authorities intend to fund using a portion of digital assets generated by participating mining companies rather than relying solely on market purchases.
According to the government decree, approved miners will receive guaranteed electricity allocations from designated energy producers, beginning with the state-owned Ekibastuz-1 coal-fired thermal power plant in the Pavlodar region. In return, operators will transfer up to 10% of the cryptocurrency mined under the program after deducting electricity costs.
The arrangement provides miners with predictable long-term energy pricing while allowing the government to accumulate Bitcoin and other eligible digital assets over time.
The framework initially allocates as much as 300 megawatts of electricity through capped-rate agreements that allow miners to purchase power directly from producers, bypassing traditional electricity distributors.
Participating firms will also be required to maintain separate cryptocurrency wallets exclusively for assets produced under the strategic mining program. However, the regulations do not prevent companies from conducting additional mining activities outside the initiative.
The policy was first reported by Russian crypto publication Bits.media following the publication of the official government decree.
The move aligns with the country’s previously announced plan to establish a national cryptocurrency reserve under the supervision of Kazakhstan’s central bank.
“Kazakhstan has every chance of becoming Central Asia’s crypto hub if restrictions are not imposed, but instead balanced regulation is introduced,” President Kassym-Jomart Tokayev said during discussions on developing the country’s digital economy.
Strict entry requirements limit participation
Not every mining company will qualify for the government’s incentives under the new strategic mining framework.
According to details published by Kazakhstan’s legal information portal Zakon.kz, applicants must satisfy extensive technical, operational and financial requirements before being admitted into the program.
Among the most demanding conditions is ownership of a cryptocurrency mining data center with a minimum capacity of 150 megawatts. Operators must also control mining equipment capable of delivering at least 150 terahashes per second (TH/s) per mining rig.
Companies seeking admission must demonstrate full compliance with tax obligations and show they have no outstanding government debts, unpaid social contributions or legal encumbrances affecting their business operations.
Applicants must also maintain resilient telecommunications infrastructure by signing agreements with at least two internet service providers to guarantee uninterrupted connectivity.
Additional requirements include operating an on-site repair center for mining hardware and software while employing qualified personnel with recognized technical certifications and professional training.
Mining companies approved under the initiative will gain access to long-term electricity contracts not only with Ekibastuz-1 but potentially with additional power producers in the future.
Industry observers view the strict standards as an attempt to attract only large-scale, financially stable operators capable of supporting Kazakhstan’s long-term digital asset ambitions.
The Kazakhstan crypto reserve initiative forms part of a much wider government effort to establish the country as one of Eurasia’s leading cryptocurrency jurisdictions.
Kazakhstan rose to global prominence following China’s sweeping crackdown on Bitcoin mining in 2021, when numerous mining companies relocated operations to the Central Asian nation because of its relatively inexpensive electricity.
The rapid influx significantly increased Kazakhstan’s share of the global Bitcoin network’s computing power. However, it also placed enormous strain on the country’s electricity grid, prompting authorities to introduce higher electricity tariffs for miners while intensifying enforcement against illegal mining operations.
Since then, policymakers have steadily shifted from crisis management toward long-term regulation.
Earlier this year, Kazakhstan granted its first cryptocurrency exchange license under amendments to its Law on Digital Assets, originally enacted in 2023. The updated framework also provides licensed miners with more legal avenues for converting mined digital assets into fiat currency through regulated domestic channels.
National Bank Chairman Timur Suleimenov previously confirmed that Kazakhstan intends to develop a state-managed cryptocurrency reserve, with holdings potentially sourced from confiscated digital assets as well as government-controlled mining operations.
“We need a centralized institutional approach to the formation and management of the crypto reserve,” Suleimenov said while outlining the central bank’s strategy for overseeing the country’s digital asset holdings.
Strategic mining could become a model for resource-rich nations
The latest reforms demonstrate how resource-rich countries are increasingly exploring ways to leverage abundant energy resources to participate directly in the digital asset economy.
Rather than treating cryptocurrency mining solely as a taxable industry, Kazakhstan is positioning it as a strategic national resource capable of contributing directly to sovereign digital wealth.
The Kazakhstan crypto reserve will ultimately consist of multiple sources, including confiscated cryptocurrency, government mining proceeds and indirect investments tied to digital assets, according to previously announced national plans.
If successfully implemented, the strategic mining framework could provide Kazakhstan with a steady pipeline of Bitcoin while offering institutional-scale miners the certainty of long-term energy access—two objectives that many governments have struggled to balance.
As the August 1 implementation date approaches, market participants will be closely watching whether the program attracts sufficient mining investment to accelerate growth of the Kazakhstan crypto reserve. The outcome may influence how other energy-producing nations approach cryptocurrency policy in the years ahead, particularly as governments increasingly view Bitcoin not merely as a private investment but as a strategic reserve asset capable of complementing traditional foreign exchange and gold holdings.
With the launch of this initiative, the Kazakhstan crypto reserve becomes a central pillar of the country’s digital asset strategy, reinforcing its ambition to become one of the world’s most regulated and competitive cryptocurrency jurisdictions while transforming domestic mining into a long-term source of national digital wealth.
