Binance Stacks More Bitcoin as SAFU Fund Holdings Reach 10,455 BTC

• Binance SAFU fund bought another 4,225 BTC worth about $300 million.
• Total SAFU Bitcoin purchases now stand at 10,455 BTC worth $734 million.
• Binance plans to convert SAFU reserves into a $1 billion Bitcoin allocation.

The SAFU (Secure Asset Fund for Users) reserve of Binance has purchased an additional 4,225 Bitcoin worth about $300 million, bringing the fund’s total acquisitions to 10,455 BTC, valued at roughly $734 million. The purchases are part of the exchange’s broader plan to convert the SAFU fund into approximately $1 billion worth of Bitcoin over the next 30 days.

Binance also said it will continue buying Bitcoin if the value of the reserve drops below $800 million, effectively maintaining a long-term allocation close to the $1 billion level. The shift marks a change from holding SAFU reserves partly in stablecoins to maintaining a permanent Bitcoin-based reserve with automatic rebalancing.

Steady Institutional Demand Could Affect Market Dynamics

The move creates ongoing spot demand for Bitcoin because the purchases are scheduled and not temporary. As the world’s largest cryptocurrency exchange, Binance’s commitment to maintaining a large BTC reserve could influence short-term supply and demand conditions in the market.

Similar actions in the past have coincided with stronger price performance. In 2023, Binance deployed about $1 billion from the SAFU fund into several cryptocurrencies during a weak market phase, and the following year saw significant gains across major digital assets. This time, however, the full allocation is focused solely on Bitcoin, potentially increasing the direct impact on BTC liquidity.

Market Conditions Provide Additional Support

Several recent developments could also help support the crypto market, including continued progress toward U.S. crypto regulatory clarity and expectations of more supportive monetary policy. Declines in gold and silver prices have also historically encouraged some investors to rotate liquidity into alternative markets such as digital assets.

Because Binance’s buying plan is publicly known, other institutional players may position ahead of the purchases, potentially adding further demand before the full allocation is completed. While analysts caution that the move does not guarantee a major rally, it could contribute to short-term market stabilization or a relief rebound during periods of volatility.

Bitcoin prices recently rose about 1.5% to around $70,000, slightly outperforming the broader crypto market. Technical analysts say Bitcoin must hold above support near $68,000 to maintain short-term stability. If the price remains above this level, the next resistance area sits near $71,000.

Related: Binance Buys $235 Million Worth of Bitcoin for SAFU Fund