Binance SAFU Fund Buys 1,315 Bitcoin Worth $100M

Binance’s user protection fund has made its first major move under a new plan. On February 2, the SAFU Fund bought 1,315 BTC for about $100.7 million. The transaction appeared on chain and was tracked by Lookonchain analysts. This purchase starts a wider shift. Binance wants to convert a large part of its SAFU reserves from stablecoins into Bitcoin. The goal is to strengthen the fund over time and keep user protection strong during market stress.

What Is the SAFU Fund and Why It Matters

The SAFU Fund, short for Secure Asset Fund for Users, is Binance’s emergency reserve. The exchange created it after a major hack in 2018. Since then, Binance has added around 10% of trading fees to this fund. It acts as a safety net for users if something goes wrong.

On January 30, Binance said it would move most of this fund from stablecoins into Bitcoin over about 30 days. The total value is close to $1 billion. The company also promised to keep the fund above $800 million at all times. If Bitcoin drops too much, Binance said it will top up the fund using its own money. This new buy shows the plan is now in action.

Details of the $100M Bitcoin Purchase

On chian data shows the SAFU wallet received 1,315 BTC in a single move. The buy happened during a market dip. Bitcoin prices were under pressure due to a stronger U.S. dollar and wider risk off mood. The transaction was shared by Lookonchain and verified through tools like Arkham Intelligence. These tools link the address to Binance’s known SAFU wallet. 

This makes the purchase easy to track and confirm. If Binance keeps buying at this pace, it could add several thousand more Bitcoin in the coming weeks. At current prices, the full conversion could mean over 12,000 BTC moving into the fund.

Market Impact and Mixed Reactions

Some traders see the move as a strong signal. Specifically, they say it shows long-term trust in Bitcoin, especially now that a large exchange is willing to hold BTC as a core reserve asset. As a result, this could add steady demand to the market. However, others are more cautious. In particular, they question the timing because the buy came right after recent liquidations pushed prices lower.

Critics say Binance may be buying cheap after market drops. Supporters reply that the fund belongs to users and aims to protect them, not to trade for profit. Despite the debate, the action is clear. Binance has started its conversion plan. The fund now holds more Bitcoin than before. Over time, this shift could change how large exchanges manage risk.

What Comes Next

More purchases may follow in the coming days. If Binance spreads buying across the full 30-day window, the market will likely watch each move closely. Currently, the SAFU Fund’s first Bitcoin buy marks a new phase. It ties user protection more closely to Bitcoin itself. Whether this proves smart will depend on how the market moves next.

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