Binance Moves $300M Bitcoin to SAFU Fund, Reserve Tops 10,000 BTC

Highlights:

• Binance’s SAFU fund crosses 10,000 BTC after the largest single Bitcoin transfer.
• The crypto exchange plans a full $1 billion SAFU conversion to Bitcoin within 30 days.
• Bitcoin volatility continues as prices swing, but firms signal confidence by buying dips.

On February 9, Binance made its largest single transfer into the Secure Asset Fund for Users (SAFU). The exchange moved 4,225 BTC, worth about $299.6 million at the time, from a hot wallet directly into the SAFU reserve. This raised the total holdings to 10,455 BTC, marking the first time the fund crossed the 10,000 BTC mark. At current prices, the reserve is valued at nearly $721 million.

“We’re continuing to acquire Bitcoin for the SAFU fund, aiming to complete conversion of the fund within 30 days of our original announcement,” Binance announced in a post on X on Monday.

Binance Builds SAFU Reserve With Major Bitcoin Transfers

The SAFU fund was launched in 2018 to protect users from losses caused by hacks or other unexpected events. At first, it was funded by trading fees and held in stablecoins like BUSD, later switching to USDC. In January, Binance said it would convert the entire $1 billion SAFU reserve into Bitcoin within 30 days. The exchange noted that Bitcoin is seen as a long-term store of value, providing a stronger safeguard during volatile periods.

Earlier in the month, Binance started moving Bitcoin into SAFU. On February 2, it added 1,315 BTC, worth about $100 million. Two days later, it transferred another 1,315 BTC, bringing the total to 2,630 BTC. Between February 6 and 7, Binance moved an additional 3,600 BTC, worth $233 million, raising the holdings to 6,230 BTC. The February 9 transfer pushed the reserve past 10,000 BTC, completing the milestone.

Binance will watch the fund closely. If Bitcoin falls and the fund drops below $800 million, they will top it up to $1 billion. This keeps the fund strong and ensures it protects users as intended. The transfers came during high market volatility. 

Binance’s SAFU move is not just a large Bitcoin purchase. It reflects a wider shift after 2022, as exchanges now compete on visible safety, especially during volatile markets. Many platforms are focusing more on user protection funds. For example, Bitget shares monthly Protection Fund reports and uses derivatives insurance funds and auto-deleveraging rules. After the FTX collapse, more exchanges began sharing on-chain proof. Kraken and OKX publish Proof of Reserves reports with clear reserve ratios.

Bitcoin Market Update

On Friday, Bitcoin dropped to $60,000, over half below its October high, then rose back to $70,000. The crypto market is struggling after losing $2 trillion in value. On February 9, Bitcoin traded near $68,903, down about 3% in 24 hours. Trading volume reached $45 billion, showing 6% decrease in the past 24 hours. Ethereum fell almost 5% to just under $2,000, and Solana dropped about 6% to around $80.

On Sunday, Binance co-founder Changpeng Zhao played down crash concerns and posted a video snowboarding with Kyrgyz President Sadyr Zhaparov. Other companies are also buying while prices are low. Strategy’s Michael Saylor hinted his firm added more Bitcoin. He shared on X, “Orange Dots Matter,” with a chart showing the purchases. Strategy said 200,000 people joined its fourth-quarter earnings call, even with Bitcoin swinging wildly.