Binance Moves 1315 BTC Into SAFU as Part Of $1B Bitcoin Reserve Plan

TLDR

• Binance moved 1,315 BTC worth $100M into its SAFU fund from a hot wallet.
• The transfer was internal and did not involve stablecoin-to-BTC conversion.
• SAFU fund will now be exposed to bitcoin’s price fluctuations.
• Binance pledged to top up SAFU if it drops below $800 million.

Binance has transferred around 1,315 bitcoin, worth approximately $100 million, into its Secure Asset Fund for Users (SAFU). This move comes just days after the exchange announced plans to shift $1 billion worth of reserves into bitcoin over 30 days.

Internal Wallet Transfer Signals Strategic Reserve Shift

Binance has moved approximately 1,315 bitcoin—worth nearly $100 million—into its Secure Asset Fund for Users (SAFU). Blockchain records show the transfer originated from a Binance-linked hot wallet and was sent to a known SAFU address. The move appears to be a reclassification of internal holdings rather than a purchase or market trade.

This action is part of Binance’s broader plan to restructure its SAFU fund using bitcoin. On January 30, Binance announced that it would convert $1 billion of its user protection reserve, previously held in stablecoins, into bitcoin over the next 30 days.

No External Trade Involved in the Transfer

On-chain data confirmed that the transaction did not interact with external wallets or involve stablecoin conversion. This suggests Binance did not buy bitcoin from the open market, contrary to earlier speculation following its SAFU strategy announcement.

Instead, the exchange appears to have shifted bitcoin it already held into a dedicated address associated with the SAFU fund. By doing this, Binance effectively earmarks the crypto assets for user protection purposes. As of now, Binance has not released a public statement about the specific movement.

SAFU Fund Will Be Tied to Bitcoin’s Market Value

This change introduces a new volatility element to SAFU’s valuation. Bitcoin’s price is known to fluctuate significantly, and a BTC-backed fund could decrease in value during market downturns. Binance has addressed this concern by promising to replenish the fund if its value falls below $800 million.

The SAFU fund was established in 2018 to protect users in extreme cases such as security breaches or system failures. It previously consisted of a mix of stablecoins and other assets. By tying a larger portion of SAFU to bitcoin, Binance is shifting away from stability-focused reserves.

Broader Strategy to Accumulate Bitcoin

Binance’s broader goal is to convert $1 billion of reserves into bitcoin over the coming weeks. The current on-chain activity suggests the company is starting with internal reallocations. Market observers are watching closely to see if Binance will begin large-scale market purchases of bitcoin later in the month.

The exchange has not provided a detailed timeline or roadmap for the remaining conversion, nor has it specified whether future steps will involve market trades or further internal transfers.

Binance’s announcement and this early transaction have sparked speculation about potential market effects. However, the absence of large external BTC purchases so far may reduce immediate trading pressure or price movement.

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