Binance has bought another 4,545 Bitcoin worth $305,000,000 for its ‘SAFU’ fund, according to Arkham Intelligence monitoring data. The latest purchase brings the reserve wallet’s total holdings to 15,000 BTC valued at approximately $1.005 billion. Binance previously bought $100M in Bitcoin last week.
“With SAFU Fund now fully in Bitcoin, we reinforce our belief in BTC as the premier long-term reserve asset,” Binance said in a post to X.
Binance’s Secure Asset Fund for Users (SAFU) was previously held in stablecoins. SAFU was originally created as a reserve mechanism to protect users in the event of security breaches or unexpected losses. However, the exchange’s decision to shift its emergency insurance reserve into BTC rather than a dollar-pegged asset reversed its position from April 2024 and placed roughly $1 billion of user protection funds directly into the cryptocurrency with the largest market cap. Notably, BTC is down to less than $66,000 at press time, down 30% in one month.
Binance has stated that if the fund’s value falls below $800 million due to market declines or legal costs, it will replenish the balance to $1 billion through an automatic top-up mechanism. The decision to shift from stablecoins to BTC has drawn mixed reactions. Some view the stablecoin-to-BTC conversion as a vote of confidence in Bitcoin’s long-term value, while critics argue the shift away from stablecoins could introduce additional price volatility to the reserve.
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Many experts anticipate Bitcoin (BTC) to hit another all-time high this year. Bernstein and Grayscale claim that the original crypto is following a 5-year path, and not the typical 4-year trajectory. This means that the asset could hit a new peak this year, five years after its 2021 all-time high.