Binance Moves $300M Into Bitcoin for SAFU Fund Amid Volatility

Binance has added 4,225 BTC worth over $300 million to its SAFU Fund as it continues converting the entire reserve to Bitcoin within 30 days.

Key Takeaways

• Binance has now added 10,455 BTC to its Secure Asset Fund for Users (SAFU), worth over $740 million.
• The exchange is converting $1 billion in SAFU reserves from stablecoins to Bitcoin by early March.
• The SAFU Fund will be replenished if its value drops below $800 million, despite market conditions.
• Critics question Binance’s motives and timing, citing market manipulation concerns amid extreme volatility.

What Happened?

Binance, the world’s largest crypto exchange by trading volume, has converted over $300 million worth of stablecoins into Bitcoin as part of its emergency reserve strategy. The move is part of a 30-day initiative to fully back its SAFU Fund with BTC instead of stablecoins. As of now, the total SAFU Fund holds 10,455 BTC, with a goal to reach 11,900 BTC by early March.

Binance Converts SAFU to Bitcoin Amid Market Turmoil

The latest 4,225 BTC purchase was recorded on the Bitcoin network on February 9, marking a significant step in Binance’s plan to migrate the SAFU Fund entirely into Bitcoin. On-chain data shows multiple recent purchases, including:

• 1,315 BTC (~$100 million) on Feb. 2
• Another 1,315 BTC on Feb. 4
• 3,663 BTC (~$237 million) added between Feb. 6–7
• Latest 4,225 BTC (~$300 million) on Feb. 9

Despite Bitcoin’s drop from nearly $77,000 to about $69,000, Binance has stayed the course. The SAFU Fund, established in 2018 as a user protection reserve, is designed to cover losses in the event of a major security breach or platform failure.

Binance framed the move as a vote of confidence in Bitcoin as the best long-term store of value in the crypto world. The exchange maintains that the SAFU Fund will be replenished to $1 billion anytime its value falls below $800 million, regardless of BTC volatility.

Critics Accuse Binance of Narrative Control

Not everyone is buying Binance’s intentions.

OKX CEO Star Xu has accused Binance of manipulating the market through aggressive narrative campaigns and exploiting market events for short-term gains. Xu specifically called out the October 10 crash, which he and others like Cathie Wood believe was sparked by a Binance software glitch, leading to widespread forced deleveraging and $28 billion in losses.

Xu argues that Binance’s recent BTC acquisitions are not about safety, but rather a marketing stunt to drive attention and prop up the broader Bitcoin ecosystem. He also criticized the crypto giant for prioritizing user traffic over building sustainable infrastructure, calling its strategy “Ponzi-like” and dangerous to overall market trust.

SAFU Becomes More Correlated With Bitcoin

While converting SAFU to Bitcoin removes stablecoin issuer risk, it introduces high exposure to BTC price swings. This was evident during a 12.6% BTC price drop on February 5, which saw Bitcoin fall to $63,525. That crash triggered over $1 billion in leveraged liquidations, according to CoinGlass.

By backing SAFU with BTC, Binance increases the fund’s correlation with broader market performance, making it more vulnerable during bear cycles. However, the exchange argues that Bitcoin remains the strongest and most transparent long-term reserve asset in the crypto space.

SAFU and Crypto Culture

The SAFU Fund has become something of a meme and a legend in crypto culture. Originating from a viral 2018 video titled “Funds Are Safu,” the term is now widely used to signal stability in times of crisis. Binance co-founder Changpeng Zhao often referenced SAFU during high-stress market events.

As of February 2026, the SAFU Fund wallet holds approximately $1 billion in cryptocurrencies, part of which is now held under Binance’s regulatory obligations in Abu Dhabi, following the firm’s relocation in 2025.

CoinLaw’s Takeaway

I see this move by Binance as both bold and risky. Backing an emergency fund with Bitcoin instead of stablecoins trades off one risk for another. Sure, it removes dependency on stablecoin issuers, but it also makes the fund vulnerable to the same price crashes it’s supposed to protect users from. In my experience, when big players like Binance double down on BTC during market dips, it sends mixed signals. On one hand, it shows confidence. On the other, it creates questions about timing and intention. Is it really about user protection, or is it about optics during a downturn?

Either way, the SAFU Fund’s pivot to Bitcoin is a huge statement about where Binance sees the future of crypto reserve assets going. Let’s just hope it doesn’t backfire if BTC takes another nosedive.

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