Binance Adds $233M in Bitcoin to SAFU Fund During Market Dip

Binance has added more Bitcoin to its user protection reserve as the market stays volatile. The exchange said it purchased thousands of BTC. As part of its plan to convert the Secure Asset Fund for Users (SAFU) from stablecoins into Bitcoin. The move comes during a market dip and reflects the company’s long term confidence in BTC. Binance also shared the on-chain wallet address to keep the process transparent.

More Bitcoin Added to the SAFU Reserve

In its latest update, Binance said it bought around 3,600 BTC for the SAFU fund. The purchase used about $250 million in stablecoins. After this purchase, the fund now holds about 6,230 BTC in total. At current prices, the Bitcoin portion of the SAFU reserve is worth more than $400 million. 

Earlier, the exchange had already started converting parts of the fund from stablecoins into BTC. The company said it plans to finish the full conversion within 30 days from the original announcement. Additionally, the exchange shared the wallet address and transaction ID. This allows anyone to track the funds on-chain.

What the SAFU Fund Is for

Binance created the SAFU fund in 2018 after a security incident. The reserve acts as an emergency pool to protect users if something goes wrong. It is funded by a portion of trading fees. It is also kept separate from the exchange’s normal operations.

The goal is simple. If a hack or serious issue happens, the fund can be use to compensate affected users. Over the years, the SAFU fund has grown into a large reserve worth around $1 billion. By shifting more of the fund into Bitcoin, Binance says it wants to strengthen the reserve with a long term asset. The company also said it will rebalance the fund if its value drops below $800 million.

Buying During the Market Dip

The timing of the purchases has drawn attention. The buys came while the crypto market faced heavy selling and strong fear among traders. Binance founder Changpeng Zhao (CZ) commented that the timing looked “perfect.” Many in the community see the move as a signal of confidence. Buying during a dip often suggests a long term outlook rather than short term trading.

So far, Binance has converted a large portion of the SAFU fund into Bitcoin. The company said it will continue buying until the transition is complete. It also promised to keep sharing updates with the community. For now, the exchange says the goal remains the same. The SAFU fund exists to protect users and the shift into Bitcoin is meant to make that reserve stronger over time.

The post Binance Adds $233M in Bitcoin to SAFU Fund During Market Dip appeared first on Coinfomania.