Kazakhstan has formally approved a strategic bitcoin mining program that ties long-term electricity access to mandatory contributions of mined digital assets to a state-managed crypto reserve. The framework provides qualified mining companies with regulated power prices under 10-year agreements while channeling a portion of their mining output to the National Strategic Crypto Reserve, significantly expanding the country's digital asset strategy and tightening government oversight across the mining sector.

Regulatory Framework and Reserve Mechanics

Under the new rules, eligible mining companies can secure electricity through long-term contracts at regulated prices. In exchange, participants must transfer a portion of their mined digital assets each month to support the National Strategic Crypto Reserve. Since electricity typically represents the largest operating cost for commercial mining operations, guaranteed long-term pricing addresses one of the sector's most significant financial uncertainties.

The operational flow involves multiple state entities. Mining companies will send digital assets to dedicated wallets managed by the Astana Hub Autonomous Cluster Fund, which will then transfer the holdings to the National Investment Corporation of the National Bank for management as part of the national reserve.

The contribution formula is calculated after electricity and transmission costs, including value-added tax, are deducted from mining revenue. Companies must then transfer 10% of the remaining mined digital assets each month, effectively linking mining incentives with the state's digital asset accumulation strategy.

Eligibility and Compliance Requirements

Participation is restricted to mining companies meeting specific technical, operational, and financial criteria. Each participant must own a data center with a minimum capacity of 150 megawatts. Mining equipment must deliver at least 150 terahashes per second per unit. These thresholds effectively limit participation to large-scale industrial operators, excluding smaller and mid-sized mining firms that previously operated in the country.

Additional requirements include maintaining two internet service agreements, operating an equipment repair center staffed with qualified personnel, and clearing all tax obligations and mandatory payments prior to application. A government commission will verify both compliance and available electricity quotas before granting approval.

Every approved company must maintain a dedicated cryptocurrency wallet for strategic mining operations. Independent auditors are required to review compliance annually before April 1. Companies that underpay the required digital asset contributions must complete the outstanding transfer within 30 calendar days.

Legal Basis and Power Supply

The framework stems from a presidential decree signed on July 7 and a government resolution approved on July 18. Together, these measures establish a regulated structure spanning mining, crypto trading, and digital asset management, routing mining output through domestic infrastructure under state supervision.

Ekibastuz GRES-1 has been designated as the first approved electricity supplier, receiving a 300-megawatt allocation for strategic mining operations. Approved companies will purchase electricity directly from the producer under 10-year agreements, with the regulated price capped at the producer's maximum approved tariff. The Ekibastuz region is a major coal-producing area, and coal-fired generation has historically powered much of Kazakhstan's mining sector.

Broader Digital Asset Strategy

The National Strategic Crypto Reserve will hold digital assets, crypto-related derivatives, and shares of companies involved in digital asset activities, extending beyond bitcoin to create broader market exposure. The reserve concept places Kazakhstan among a small group of nations developing state-managed digital asset holdings, alongside El Salvador, which has accumulated bitcoin as a national treasury asset since 2021.

Kazakhstan's wider digital asset roadmap includes plans for tokenization platforms, stablecoin payment channels, tokenized government securities, and a National Cryptocurrency Analysis Center.

Kazakhstan emerged as one of the world's leading bitcoin mining hubs following China's 2021 mining ban, which drove operators to relocate. The Cambridge Centre for Alternative Finance ranked Kazakhstan among the top bitcoin mining nations by hashrate during this period. The country subsequently tightened mining regulations amid strain on the national electricity grid. The latest framework represents a shift toward regulated expansion while directing mining activity into a state-backed reserve structure.