Binance initiates $100M Bitcoin acquisition as first step in $1B SAFU fund transformation
The cryptocurrency exchange Binance has completed its initial $100 million Bitcoin acquisition, marking the beginning of its plan to convert the entire $1 billion SAFU user protection fund from stablecoins to BTC.
The cryptocurrency exchange Binance has completed the acquisition of its initial 1,315 Bitcoin as the first phase of its transformation strategy for the Secure Asset Fund for Users (SAFU).
The purchased Bitcoin (BTC), valued at $101 million, was acquired at an average cost of $77,409.89 per coin, as confirmed by Blockchain.com data. The exchange has announced its intention to complete the conversion of SAFU's remaining $1B holdings from stablecoins into Bitcoin over the coming 27 days.
Speaking to Cointelegraph on Friday, a Binance spokesperson confirmed that the SAFU fund's core purpose remains unchanged, continuing to serve as an emergency reserve for users during extreme circumstances or loss events.
Binance transitions SAFU holdings from USDC into BTC
Established in 2018, the SAFU fund operates as a specialized user protection reserve financed through Binance's trading fee revenue. During 2024, Binance transitioned the fund's stablecoin holdings from BUSD to USDC. At that time, the exchange characterized this change as a strategy to maintain the emergency reserve's liquidity, dependability and connection to the US dollar.
The current transition to BTC represents a complete departure from stablecoins, essentially establishing user protection with the asset that Binance views as the cryptocurrency sector's foremost long‑term value preservation vehicle.
With approximately $900 million in remaining purchasing capacity, Binance has designated these funds specifically for BTC acquisitions.
This strategic shift occurs amid market turbulence triggered by a significant cryptocurrency downturn, during which BTC's price temporarily dropped under the $75,000 threshold.
The purchase additionally aligns with renewed accumulation signals from Michael Saylor's Strategy, which indicated plans to acquire additional Bitcoin following the weekend market crash that drove BTC prices beneath its cost basis.