Kazakhstan's Crypto Mining Strategy May Evolve into AI Compute Playbook

Kazakhstan has introduced a new decree that allows oil producers to burn flared gas for off-grid electricity generation, which can be used for digital mining. This initiative, signed by President Kassym-Jomart Tokayev in July, is aimed at optimizing Bitcoin mining and creating a more transparent market.

The decree also proposes carving out an exemption for regulated crypto income from personal income tax, as well as building infrastructure to use stablecoins for cross-border trade. The Ministry of Artificial Intelligence and Digital Development (MAIDD) Minister Zhaslan Madiyev said the goal is to make Kazakhstan a point of attraction for global capital and expertise.

Crusoe, an energy-and-computing firm, has pioneered the strategy of turning waste gas into revenue by powering Bitcoin mining operations. However, in 2025, Crusoe sold its Bitcoin mining operations to NYDIG and fully pivoted to AI infrastructure, with a pipeline of over 10 gigawatts of AI data center projects.

The pieces are aligning for Kazakhstan's new decree to potentially evolve into an AI compute playbook, given the country's existing infrastructure, growing regulated crypto market, and government courting global capital. The '70/30' model would allow data centers and miners to tap up to 70% of new power capacity created by infrastructure upgrades.