After 2 years, additional investment! Binance SAFU Fund invests over $100 million to buy 1,315 Bitcoins

Binance SAFU Fund Buys Bitcoin for the First Time in Nearly 2 Years, Internal Transfer of Over $100 Million in Assets Indicates Shift Toward Long-Term BTC Reserve Strategy

SAFU Returns to BTC for the First Time, On-Chain Transfer Exceeds $100 Million

The world’s largest cryptocurrency exchange Binance’s user protection fund SAFU recently saw a large on-chain movement, with approximately 1,315 BTC transferred into a designated SAFU address, valued at over $100 million. On-chain data shows that these assets originate from Binance’s labeled wallets and were transferred directly without passing through external addresses, indicating an internal reclassification of assets rather than external market buying activity.

This is also the first time in nearly 2 years that SAFU has explicitly increased its Bitcoin holdings, signaling a shift in the fund’s asset allocation strategy. Binance later confirmed that this move is part of SAFU’s conversion plan, and the fund will continue to add Bitcoin assets to meet its target allocation.

Image Source: Blockchain.com Binance Converts $100 Million into Bitcoin

From Stablecoins to BTC, Fund Risk Structure Significantly Changes

SAFU was established in 2018, primarily to compensate users in the event of hacking attacks or extreme risk incidents. Historically, the fund mainly held stablecoins pegged to the US dollar to maintain value stability and high liquidity. However, Binance previously announced that approximately $1 billion worth of stablecoins would be gradually converted into Bitcoin, with a commitment to top up the difference if the fund’s market value drops below $800 million. This transfer marks the official start of the conversion process, but it is not new buying activity; rather, it involves reassigning existing Bitcoin holdings into SAFU’s name. This allocation means the fund’s value will fluctuate with market movements, and the risk management mechanism will increasingly depend on Binance’s subsequent replenishments and liquidity management capabilities.

Market Interprets This as a Shift Toward Long-Term Reserves, Not Short-Term Price Boosting

After the announcement, the market initially speculated that Binance might become a major buyer in the spot market, but on-chain analysis suggests this is more about asset reallocation rather than new demand. Nonetheless, the move toward Bitcoin holdings is symbolically significant, indicating that the exchange is tying its long-term safety reserves more closely to native crypto assets.

Analysts point out that this move effectively anchors the value of the user protection fund to Bitcoin’s performance. During a bull market, the fund’s size will naturally expand, but during sharp declines, it will test Binance’s replenishment commitments and liquidity management. For the overall market, this is not just a simple capital inflow event but a clear signal of a major exchange’s financial and risk model transformation.

This content is summarized by Crypto Agent from various sources, reviewed and edited by Crypto City. It is still in the training phase and may contain logical biases or informational errors. The content is for reference only and should not be considered investment advice.