Bitcoin trades at $ 68,871 as of writing, following a volatile start to February that reshaped sentiment across crypto markets. Against this backdrop, Binance confirmed a $300 million Bitcoin purchase for its Secure Asset Fund for Users, or SAFU, converting stablecoins into 4,225 BTC.
This latest transaction lifted the fund’s total holdings to 10,455 BTC and placed renewed focus on how exchanges structure safety reserves during sharp market swings.
SAFU Conversion Plan Moves Forward
Binance announced the SAFU conversion strategy on January 29, outlining plans to shift $1 billion of reserves into Bitcoin over a 30-day window. The exchange also set a safeguard to rebalance the fund if its value drops below $800 million. Monday’s purchase marked one of the largest tranches so far. Binance framed the move as part of a scheduled process rather than a reaction to short-term price action.
SAFU exists to protect users during extreme market events, not during calm conditions. Bitcoin’s sharp selloff in early February tested that premise. On February 5, Bitcoin dropped about 12.6% in a single day to roughly $63,500 amid forced liquidations and broader risk-off moves.
CoinGlass data showed more than $1 billion in leveraged liquidations during that session. In this environment, SAFU’s growing exposure to Bitcoin raised new questions. What happens if prices fall fast enough to trigger the rebalance threshold?
On-Chain Data Tracks SAFU Accumulation
Blockchain observers have followed SAFU-related inflows closely since the conversion plan became public. On February 2, Binance transferred 1,315 BTC, worth about $100 million, into the SAFU wallet. Another 1,315 BTC followed on February 4. During the February 6–7 window, monitoring accounts flagged roughly 3,600 BTC in further accumulation.
The February 9 transfer of 4,225 BTC brought the running total to 10,455 BTC, confirming steady execution toward the $1 billion target.
Source: Binance via X
What SAFU Represents for Users
Binance launched SAFU in July 2018 and funds it through a portion of trading fees. The exchange has stated that it aims to maintain the fund around a $1 billion value, while adjusting the asset mix over time.
This flexibility now stands at the center of attention. A SAFU fund with heavier Bitcoin exposure moves more closely with the broader crypto market, especially during drawdowns, even with a top-up commitment in place.
Safety Funds Gain Strategic Importance
Binance’s move fits a wider industry shift toward visible safety mechanisms. After the FTX collapse, exchanges began competing on transparency and user protection. Bitget publishes monthly protection fund reports. Bybit documents its auto-deleveraging framework. Kraken and
OKX release regular proof-of-reserves disclosures. Binance has highlighted its own proof-of-reserves system, which uses Merkle trees and zero-knowledge proofs to allow user verification without revealing balances.
Regulatory Context Adds Another Layer
As of February 2026, the SAFU wallet holds close to $1 billion in crypto assets. Binance now holds part of these funds as capital reserves under regulatory obligations in Abu Dhabi, where the company moved its headquarters in 2025.
This structure links SAFU not only to market dynamics but also to compliance expectations in key jurisdictions.
What the Market Watches Next
Two signals now matter most. The first involves the pace of remaining conversions toward the $1 billion goal within the 30-day timeline. The second centers on volatility. If Bitcoin prices test the $800 million safeguard, Binance would need to demonstrate its rebalance policy in real time.
For now, SAFU buying continues, and the market watches closely. Will safety reserves hold firm when they matter most?
Source: https://coinpaper.com/14409/bitcoin-price-today-as-binance-adds-300-m-safu-hits-10-455-btc
