Binance Converts SAFU Reserves to Bitcoin with $100 Million Buy

• As part of Binance’s plan to shift SAFU currency from stablecoins to Bitcoin, it bought $100M BTC.
• Binance is on a 30-day schedule to convert up to $1 billion from its SAFU fund into BTC.
• Binance bought $100M BTC during a market dip, signaling confidence despite BTC falling below $73K.

Binance, the world’s biggest crypto exchange, bought $100 million worth of Bitcoin (about 1,315 BTC) as part of its plan to change the currency of its emergency customer fund, known as SAFU, from stablecoins to Bitcoin.

The acquisition was confirmed on-chain via data from Arkham Intelligence and Binance’s own wallet announcements.

This was the second such purchase this week, bringing the total Bitcoin in its customer protection fund to about 2,630 BTC, worth around $201 million. Binance is on a 30-day schedule to convert up to $1 billion from its SAFU fund into Bitcoin, showing a big vote of confidence in Bitcoin’s future value.

SAFU was started in 2018 and has always been kept in stablecoins to keep its value steady. Moving this safety net into Bitcoin, whose price can swing wildly, is a rather notable change in strategy. Binance promises to keep the fund above a certain value and add to it if required.

This is seen as both positive and risky among crypto enthusiasts. Some see it as a huge show of faith in Bitcoin, while others worry that a long crypto market slump could shrink the fund’s value when it’s needed the most.

Bitcoin’s Drop in Price

Binance made this buy while the market was selling off heavily, with Bitcoin dropping below $73,000. During this time, millions in leveraged trades were forcefully closed due to falling prices. The purchase is widely seen as Binance “buying the dip,” which shows its belief that Bitcoin will be worth more in the future.

Generally speaking, Bitcoin has been trending downward for a while now, sitting at its lowest price in several months after hitting over $126,000 last year. The price swings have been made worse by a mix of economic concerns, global tensions, Bitcoin ETF outflows, and a wave of forced selling.

Interestingly, Binance’s purchase is similar to what other large companies are doing. Notably, days ago, Michael Saylor’s company, Strategy, reportedly bought approximately 855 Bitcoin for $75 million while prices were low, adding to its massive corporate stash.

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