Binance has purchased 4,225 Bitcoin worth about $300 million for its Secure Asset Fund for Users, increasing total SAFU holdings to 10,455 BTC. The move forms part of a previously announced $1 billion conversion plan amid ongoing crypto market weakness.
Binance Expands Bitcoin Allocation in SAFU Fund
Blockchain data from Arkham shows Binance transferred 4,225 BTC into its SAFU wallet on Monday. The purchase raised the fund’s total Bitcoin balance to 10,455 BTC. At current market prices, the holdings are valued at more than $720 million.
Arkham Explorer displays Binance’s SAFU wallet, showing Bitcoin transfers tracked on-chain for transparency and verification. [Arkham]
The acquisition follows Binance’s January 30 announcement that it would convert $1 billion of stablecoin reserves into Bitcoin within 30 days. The exchange confirmed that the latest purchase forms part of that structured rebalancing plan.
SAFU, short for Secure Asset Fund for Users, was established after the 2019 exchange hack. The fund functions as an emergency reserve designed to protect users during extreme events.
$1 Billion Conversion Plan Underway
Binance previously disclosed its intention to shift the SAFU fund from stablecoins into Bitcoin. The exchange stated that the conversion would occur gradually over a 30-day period.
In a post published on X, Binance wrote that it is “continuing to acquire #Bitcoin for the SAFU fund.” The company added that it aims to complete the conversion within the announced timeframe.
#Binance SAFU Fund Asset Conversion progress update.
Binance has completed the purchase of 4225 BTC for the SAFU Fund, amounting to 300M USD stablecoins.
Our SAFU BTC address now holds 10,455 BTC:
1BAuq7Vho2CEkVkUxbfU26LhwQjbCmWQkDTXID: https://t.co/ZnE2h3ZN7H
We’re… pic.twitter.com/IUzdLMPdVI
— Binance (@binance) February 9, 2026
The exchange also stated that it would rebalance the fund back to $1 billion if volatility pushes its value below $800 million. This condition was included in the original announcement.
Market Conditions Surrounding the Purchase
The Bitcoin purchase occurred during a broader market correction. Bitcoin fell to $59,930 on Friday, according to TradingView data. That price level was last seen in October 2024.
By Monday, Bitcoin traded near the $69,000 range after stabilizing from recent selling pressure. Despite the $300 million acquisition, price movement remained relatively contained.
Bitcoin fell to $59,930 before stabilizing near the $69,000 range during Binance’s SAFU conversion period. [CoinMarketCap]
Momentum indicators showed a recovery from oversold levels rather than an aggressive breakout. Market reaction suggested that traders had anticipated the ongoing SAFU conversion.
Investor Sentiment Remains Fragile
Market analysts have described current investor sentiment as fragile. Hina Sattar Joshi, director for digital assets at TP ICAP, said investors remain anchored to the traditional four-year Bitcoin cycle.
According to Joshi, Bitcoin’s price historically follows recurring boom-and-bust patterns. In the absence of strong catalysts, sentiment remains cautious across the digital asset sector.
At the same time, data from Nansen showed that “smart money” traders increased leveraged short positions. These traders added $7.38 million in short exposure and were net short Bitcoin by $109 million.
However, Avalanche stood out among major assets. Nansen data showed $7.38 million in cumulative long positions on AVAX, while most other leading cryptocurrencies saw bearish positioning.
SAFU Structure and Risk Exposure
The shift toward Bitcoin increases the SAFU fund’s exposure to price volatility. Unlike stablecoins, Bitcoin’s value fluctuates based on market demand and macroeconomic factors.
Binance has framed the move as a balance sheet adjustment aligned with long-term digital asset strategy. The exchange has not indicated any change to the fund’s purpose or accessibility.
SAFU remains an emergency reserve designed to cover extreme situations. Its structure has been publicly tracked since its creation following the 2019 security breach.
By converting stablecoins into Bitcoin, Binance reduces reliance on fiat-linked reserves. At the same time, the fund’s value will now move in line with Bitcoin’s market performance.
Transparency and Public Updates
Binance stated that it will provide public updates as additional conversions occur. The exchange confirmed that the transition remains on schedule within the 30-day framework.
The structured nature of the conversion has drawn attention across the industry. Exchanges have faced increased scrutiny over reserve transparency following past market disruptions.
The SAFU wallet balance is visible on-chain, allowing independent verification of holdings. Blockchain data platforms such as Arkham continue to track wallet movements.
Meanwhile, Bitcoin’s circulating supply may tighten gradually if large entities accumulate reserves. However, immediate price effects from the SAFU purchases have remained limited.
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Broader Market Context
The conversion takes place during a period of heightened volatility in the crypto market. Early February saw sharp declines across major digital assets.
Bitcoin’s slide below $60,000 renewed discussion about risk management among exchanges and institutional holders. Market participants continue to monitor reserve composition and liquidity safeguards.
Despite price swings, Binance proceeded with the scheduled allocation. The exchange has not adjusted its timeline following recent market fluctuations.
As the 30-day conversion window progresses, additional Bitcoin purchases may follow. Binance has indicated that it will continue rebalancing until the full $1 billion allocation is completed.
For now, SAFU holds 10,455 BTC, valued at more than $720 million based on current prices. The fund’s total value will continue to fluctuate alongside broader market movements.
FAQs
- What is Binance’s SAFU fund?
Ans. Binance’s Secure Asset Fund for Users (SAFU) is an emergency reserve created in 2019 after a security breach. The fund is designed to protect users in extreme situations by holding reserve assets.
- How much Bitcoin does Binance hold in SAFU?
Ans. Following the latest purchase, SAFU holds 10,455 BTC. At current market prices, the holdings are valued at more than $720 million.
- Why is Binance converting stablecoins to Bitcoin?
Ans. Binance announced a plan to convert $1 billion in stablecoin reserves into Bitcoin within 30 days. The move aligns the emergency reserve more closely with the broader crypto market.
- How does SAFU protect Binance users?
Ans. SAFU acts as a financial backstop in case of security incidents or unexpected events. The reserve can be used to compensate users if necessary.
- Does Binance rebalance the SAFU fund?
Ans. Yes. Binance stated it would rebalance the fund back to $1 billion if market volatility reduces its value below $800 million.
- How can SAFU holdings be verified?
Ans. SAFU wallet balances can be tracked publicly using blockchain analytics platforms such as Arkham Intelligence, which monitor on-chain transactions.
