Binance Converts $100M to Bitcoin: First Step in $1 Billion SAFU Overhaul
Binance, the world’s largest cryptocurrency exchange by trading volume, has started its new treasury plan by buying 1,315 more BTC...
Quick overview
- Binance has purchased 1,315 BTC for its Secure Asset Fund for Users (SAFU), totaling approximately $100.42 million.
- This purchase marks the beginning of a 30-day plan to convert the fund's $1 billion reserve from stablecoins to Bitcoin.
- The move comes amid significant market volatility, with Bitcoin trading nearly 40% below its all-time highs.
- Binance aims to bolster user protection by implementing a 'floor value' system to maintain the fund's value during price fluctuations.
Binance, the world’s largest cryptocurrency exchange by trading volume, has started its new treasury plan by buying 1,315 more BTC for its Secure Asset Fund for Users (SAFU). This $100.42 million purchase kicks off a 30-day effort to shift the fund’s $1 billion reserve from stablecoins to Bitcoin.
The move comes as the broader crypto market grapples with significant volatility, with Bitcoin trading nearly 40% below its October 2025 all-time highs.
The Transaction Details
On-chain data from Arkham Intelligence shows the transfer happened on Monday, February 2, 2026. Binance moved the funds from its hot wallets to the SAFU Fund wallet, which begins with “1BAuq”.
- Amount Purchased: 1,315 BTC
- Value at Execution: ~$100.42 million (approx. $76,365 per BTC)
- Total SAFU Bitcoin Holdings: Now stands at 2,630 BTC (~$201.12 million)
Binance confirmed the transaction through its official channels, saying:
Binance just shifted 1315 BTC worth 100 mil into SAFU fund as reserves rebalance, straight internal treasury move no market dump. Perfect timing after 72k lettuce purge, shows cex fortress HODLing user protection like pros. Weak hands panic, big players stack. pic.twitter.com/lqYi0DSRl3
— Taurus – Bitcoin Bull (@Taurus4BTC) February 4, 2026
“We’re continuing to acquire Bitcoin for the SAFU Fund, aiming to complete the conversion within 30 days of our original announcement on January 30. By making this move, we’re embracing market cycles and standing shoulder-to-shoulder with the industry.”
Strategic Pivot: From Stablecoins to Bitcoin
The SAFU Fund was set up in 2018 as an emergency insurance reserve to protect users if there are major security breaches or platform failures. In the past, much of the fund was kept in stablecoins like USDC to keep its value steady at $1 billion.
In late January 2026, Binance said it would change its strategy and convert all stablecoin reserves in the fund to Bitcoin. The company also promised a “floor value” system: if Bitcoin’s price drops and the fund’s value falls below $800 million, Binance will use its own revenue to make up the difference and keep user protection strong.
https://intel.arkm.com/explorer/address/1BAuq7Vho2CEkVkUxbfU26LhwQjbCmWQkD/
Market Context & Analyst Reactions
The purchase happened during a time of “extreme fear” in the market. In the past 24 hours, Bitcoin has traded between $72,897 and $78,974, having trouble getting back above the $80,000 mark.
- Supporters see this as a bullish sign, saying that Binance “buying the dip” with $1 billion shows strong long-term belief in Bitcoin as a better store of value than stablecoins backed by fiat.
- On the other hand, skeptics worry that linking an insurance fund to a volatile asset during a market correction is risky. If the price drops toward $60,000, as some analysts warn, the fund’s value would fall and Binance would need to add cash right away.
Current Market Snapshot (Feb 4, 2026)
The market reaction has been mixed but active, with the purchase seemingly providing a short-term floor for prices.
- Bitcoin Price: ~$76,435 (-3% in 24h)
- Futures Open Interest (OI): $51.15 billion. While overall OI is slightly down (-1.32% on CME), trading volume has surged 40%, indicating high trader engagement driven by the news.
- Sentiment: Extreme Fear.
By changing its reserves, Binance is showing confidence in Bitcoin’s long-term strength. The company is positioning itself as more than just an exchange, but also as a major institutional holder whose interests are tied to Bitcoin’s performance.
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