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Kazakhstan creates strategic crypto mining program for a national reserve

The plan ties approved miners to electricity quotas under 10-year power contracts and requires them to transfer part of what they mine for investment in crypto-linked assets and equities.

Reported · Written up by our desk · Regulation

Kazakhstan has outlined a national strategic crypto reserve that would be funded through bitcoin mining, as part of a broader effort by President Kassym-Jomart Tokayev to pull the country’s mining industry into a more regulated, state-supervised system, Bitcoin Magazine reports.

According to the July 7 presidential decree and a government resolution approved July 18, the state would steer mining output and trading through Kazakh infrastructure, with the government taking a share of mined coins for the reserve. The July 18 rules set up a program of “strategic digital mining,” under which miners receive electricity quotas at capped tariffs through listed power producers under 10-year contracts.

Miners would need to run a data center of at least 150 megawatts, using rigs that each clear 150 terahashes per second, among other requirements. The first approved power source is the Ekibastuz GRES-1 coal plant, with a 300-megawatt quota, and miners must hand over part of what they mine.

The reserve is structured as a vehicle to invest in digital assets, derivatives linked to those assets, and shares of companies that build or invest in crypto, with the National Bank’s investment arm overseeing the approach. Bitcoin Magazine adds that Kazakhstan previously floated a $1 billion crypto reserve backed in part by seized assets and state-mined coins, and that the central bank moved to invest up to $350 million in crypto-linked funds.

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