Binance finalizes $1 billion SAFU reserve conversion into bitcoin

Binance said it has finalized the conversion of its Secure Asset Fund for Users, or SAFU, into bitcoin (BTC), completing a $1 billion transition first announced last month.

The crypto exchange confirmed it purchased a final tranche of 4,545 BTC on Thursday, bringing total SAFU holdings to 15,000 BTC. Binance said the transition was completed within 30 days of its initial commitment.

At the time of completion, the fund’s holdings were valued at approximately $1.005 billion, based on a bitcoin price of $67,000, according to Binance’s statement.

Binance also published the bitcoin wallet address associated with the fund and shared the latest transaction hash reflecting the final purchase onchain.

SAFU, established by Binance in 2018, is an emergency insurance reserve designed to protect users in the event of security breaches or other unforeseen incidents affecting the exchange. The fund has historically been held in a mix of crypto and stablecoin assets.

"With SAFU Fund now fully in bitcoin, we reinforce our belief in BTC as the premier long-term reserve asset," Binance said on X.

The move follows Binance’s earlier pledge to reallocate $1 billion of SAFU stablecoin reserves into bitcoin during a period of market volatility.

To address potential future volatility from holding bitcoin instead of stablecoins, Binance will conduct regular audits and rebalancing of the fund based on market value. "If the fund's market value falls below $800 million due to BTC price fluctuations, Binance will rebalance the fund to restore its value to $1 billion," the exchange wrote at the time.