Kazakhstan Greenlights Strategic Mining Rules Aimed at Building a $1B Bitcoin Reserve

Kazakhstan has approved a sweeping new framework that ties large-scale Bitcoin mining to the buildup of a national crypto reserve. On July 23, the government adopted the "Rules for Implementing Strategic Crypto Mining," a policy that offers qualified mining firms fixed electricity pricing for as long as 10 years. In exchange, participating miners must transfer a share of newly mined Bitcoin to a state-linked fund that is targeting as much as $1 billion in crypto reserves. Under the rules, companies that clear the government's approval process receive capped electricity quotas, designed to stabilize power costs over the decade-long term. Their required contribution of mined digital assets goes to the Astana Hub Autonomous Cluster Fund, which is managed by the National Investment Company of Kazakhstan. The move builds on a multiyear policy push. Kazakhstan legalized mining operations in 2020 and introduced its Law on Digital Assets in 2023. In 2025, officials outlined plans for a national crypto reserve fund valued between $500 million and $1 billion, funded through seized assets and mining-related revenue. In March 2026, the central bank indicated it could allocate up to $350 million from existing gold and foreign exchange reserves to crypto-related investments. Kazakhstan joins a growing list of governments using mining to accumulate state-level Bitcoin holdings. Bhutan, El Salvador, the UAE, and Pakistan have all pursued similar strategies, and some researchers estimate as many as 13 governments may be involved. Bhutan is reported to hold roughly 6,000 BTC, supported by hydropower-based mining. El Salvador holds about 7,517 BTC, including approximately 474 BTC attributed to domestic mining. Kazakhstan's model is structured as a public-private partnership. Instead of operating state-run mines, the government is relying on private operators and taking a portion of the output. After China's 2021 crackdown on crypto mining, Kazakhstan briefly became the world's second-largest Bitcoin mining hub as miners moved in for lower power costs. The surge strained the electricity grid and fueled illegal mining that overwhelmed local infrastructure. The new rules aim to address those energy pressures while keeping the economic upside of industrial-scale mining.