#BinanceBitcoinSAFUFund
Key Takeaways
Binance’s SAFU fund purchased $300 million in Bitcoin, increasing its total holdings to 10,455 BTC.
The purchase is part of a planned $1 billion conversion of SAFU stablecoins to BTC over 30 days, with an $800 million rebalance safeguard.
The move follows a sharp early-February Bitcoin selloff that highlighted exchange backstops and transparency concerns.
SAFU’s Role Tested Amid Bitcoin Price
A “user protection fund” is supposed to be there on the worst day, not the best day.
Shifting a large chunk of SAFU from stablecoins into BTC trades one risk for another: stablecoin and issuer risk versus Bitcoin price volatility.
That volatility has been on display. Bitcoin slid sharply in early February, with a one-day drop of about 12.6% to around $63,525 on Feb. 5 amid broader risk-off moves and forced liquidations.
CoinGlass data showing over $1 billion in leveraged liquidations during the selloff.
