Binance Completes Initial $100M Bitcoin Purchase for SAFU Emergency Fund Conversion
The cryptocurrency exchange has acquired 1,315 BTC as the first step in converting its $1 billion user protection fund from stablecoins to Bitcoin.
Binance has executed the opening transaction of its plan to transform its Secure Asset Fund for Users (SAFU) into a Bitcoin-denominated reserve, purchasing 1,315 BTC valued at approximately $101 million [1].
The exchange paid an average of $77,409.89 per coin for the initial acquisition, with plans to complete the remaining $900 million conversion within 27 days, according to blockchain data [1].
Established in 2018 and financed through trading fee allocations, SAFU serves as an emergency backstop to protect users during severe security incidents or losses. The fund will maintain this protective function despite the asset shift, a company representative confirmed [1].
This marks the second major composition change for SAFU in recent years. In 2024, Binance transitioned the fund's holdings from its proprietary BUSD stablecoin to USDC, citing the need for dollar-pegged liquidity. The current move eliminates stablecoins entirely from the reserve [1].
The conversion coincides with significant market volatility that briefly pushed Bitcoin prices below $75,000. The timing also follows indications from major institutional holder Strategy that it may increase Bitcoin acquisitions following the recent price decline [1].
Sources
AI-Assisted Content
This article was created with AI assistance. All facts are sourced from verified news outlets.