Binance Completes $1 Billion Bitcoin Purchase for Emergency Fund
Binance has fully converted its $1 billion Secure Asset Fund for Users (SAFU) into Bitcoin. In the final phase on Thursday, the exchange purchased 4,545 BTC, bringing total SAFU holdings to 15,000 BTC, valued at approximately $1.005 billion.
This transition was completed ahead of the original 30-day timeline. Binance accumulated the full position at an average cost of around $67,000 per Bitcoin.
Previously, SAFU consisted of multiple assets, including stablecoins, to compensate users in case of hacks or other unforeseen events. The fund is now entirely held in Bitcoin.
Binance assured users that if extreme market volatility causes the fund’s value to drop below $800 million, reserves will be replenished.
Major Recent Purchases
Thursday’s acquisition was worth approximately $304 million, coming just three days after a $300 million purchase on Monday. According to Binance, this move reflects its strong commitment to Bitcoin as a long-term institutional reserve asset.
On February 2, Binance initiated the on-chain process by transferring approximately 1,315 BTC (around $100 million) from hot wallets into SAFU. This is considered one of the most notable treasury-style reallocations into Bitcoin by a crypto exchange.
Market Conditions and Smart Money Positions
These actions took place during extremely negative overall market sentiment. The Crypto Fear & Greed Index fell to level five — a record low reading — signaling extreme fear.
According to blockchain analytics firm Nansen, smart money traders have positioned for further downside in major cryptocurrencies. The report states that these traders currently hold a net short position of $105 million in Bitcoin, while most major digital assets are also in a net short trend — with the exception of Avalanche.
