Binance Completes $1 Billion Bitcoin Conversion for SAFU User Protection Fund

• Binance bought 4,545 Bitcoin, completing its planned $1 billion reserve conversion.
• SAFU fund protects users by covering losses from hacks, breaches.
• SAFU reserve now holds about 15,000 Bitcoin worth roughly $1 billion.

Cryptocurrency exchange Binance has purchased an additional 4,545 bitcoin worth about $305 million for its emergency insurance reserve, bringing the fund’s total bitcoin holdings to roughly 15,000 BTC, valued at just over $1 billion.

The latest purchase completes the company’s previously announced plan to convert $1 billion of stablecoin reserves into bitcoin over a 30-day period. Blockchain analytics platforms tracked the transactions in real time, identifying the latest transfer to the fund’s wallet within minutes of execution.

Gradual Bitcoin Purchases

Binance accumulated the bitcoin over several transactions carried out during February while prices moved lower:

• Feb. 2: About 1,315 BTC purchased for roughly $100 million at around $76,045 per coin.
• Feb. 4: Another 1,315 BTC acquired at approximately the same price level.
• Feb. 6: Around 3,600 BTC bought for about $250 million at roughly $69,444 per coin.
• Feb. 9: About 4,225 BTC purchased for close to $300 million at around $71,006 per coin.
• Feb. 12: Final purchase of 4,545 BTC completed at roughly $66,006 per coin.

SAFU Fund Strengthened

The Secure Asset Fund for Users (SAFU), launched in 2018, functions as Binance’s emergency reserve designed to protect customers in the event of hacking incidents or security breaches. The fund is financed through a portion of trading fees collected by the exchange.

Following the latest acquisition, the SAFU reserve now consists primarily of bitcoin holdings worth approximately $1 billion, though the composition of assets may be adjusted periodically at the company’s discretion.

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Conversion Strategy Amid Market Decline

Binance announced the bitcoin conversion strategy on Jan. 30, stating it would gradually move stablecoin reserves into BTC over a month. Since the initial purchases began, bitcoin’s market price has fallen from around $77,000 to roughly $67,000, allowing the fund to accumulate coins at lower price levels.

Regulatory Custody and Oversight

Part of the SAFU reserves is also used as capital backing to meet regulatory requirements within the Abu Dhabi Global Market (ADGM). The fund is currently held and administered by Nest Clearing and Custody Limited, a recognized clearing house operating under the ADGM Financial Services Regulatory Authority.

Origin of the “SAFU” Concept

The term “SAFU” originated in 2018 after former Binance chief executive Changpeng Zhao reassured users during an unscheduled maintenance event by stating that “funds are safe.” The phrase later evolved into a widely used industry term and inspired the name of the exchange’s protection fund.

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