The government of Kazakhstan has approved rules for strategic digital mining. Large mining companies will be able to purchase electricity at a price not exceeding the maximum rate charged by electricity producers by signing 10-year contracts. In return, they will donate a portion of their mined digital assets each month, free of charge, to help establish the National Strategic Crypto Reserve (NSCR).
How the system will work
Miners will transfer their mined digital assets to dedicated wallets of the Astana Hub Autonomous Cluster Fund. The assets will then be placed under the trust management of the National Investment Corporation of the National Bank of Kazakhstan, which will invest them in the NSCR.
Under the rules, miners will not transfer 10% of all cryptocurrency they mine. Instead, they will contribute 10% of the digital assets remaining after deducting the cost of electricity consumed and electricity transmission, including value-added tax (VAT), with those costs converted into an equivalent amount of digital assets.
Electricity supply
Initially, only one power producer will participate in the program: Ekibastuz GRES-1. The facility has been allocated a 300-megawatt quota for strategic digital mining.
Approved participants will sign direct electricity purchase agreements with the power producer for a term of 10 years. The price under those agreements may not exceed the producer’s maximum regulated tariff.
Eligibility requirements
The program is open to companies that meet a set of technical and financial requirements. To qualify, a miner must have:
- An owned data center with a capacity of at least 150 MW.
- A connection to the power grid through a substation with a voltage of at least 35 kV and authorized capacity of at least 1 MW.
- Mining equipment with a computing capacity of at least 150 terahashes per second (TH/s) per unit.
- At least two internet service agreements with telecommunications operators.
- An on-site equipment repair center and qualified personnel.
- No outstanding tax liabilities, mandatory payments, or social contributions, and no encumbrances on its property.
Applications will be reviewed by a special commission under the authorized government body. The commission will assess whether applicants meet the eligibility requirements and whether sufficient electricity quotas remain available.
Compliance and reporting
Each participant must open a separate cryptocurrency wallet for strategic mining operations. Companies also must submit the results of an independent audit each year by April 1.
If the audit finds that a miner transferred fewer digital assets to the Astana Hub than required, the company must transfer the outstanding amount within 30 calendar days.
