Binance Drops $300M on Bitcoin for SAFU Fund

Binance acquires 4,225 BTC at a cost of 300 million dollars, increasing its SAFU Fund to 10,455 BTC. The fund keeps purchasing Bitcoin in order to convert it within 30 days to safeguard users.

Binance made a massive acquisition of Bitcoin to protect its user funds. The buy of 4,225 BTC with $300,000,000 of stablecoins was a major milestone toward transforming the SAFU Fund into Bitcoin.

As a post on X states, the SAFU wallet has 10,455 BTC. Binance posted the wallet address 1BAuq7Vho2CEkVkUxbfU26LhwQjbCmWQkD to be verified. The purchase is validated on-chain by the transaction ID.

Source: Binance 

Binance stated that it will continue to purchase Bitcoin on behalf of SAFU. The idea is to complete the conversion in 30 days, and afterward, updates will be made as the purchases proceed.

Why SAFU Matters for Crypto Users

The SAFU Fund was opened in July 2018. It was developed by CEO Changpeng Zhao, who was shaken by the security issues that hit crypto after the hacks of Mt. Gox in 2014 and Bitfinex in 2016.

On platform issues, CZ would often say Funds are safe, making the phrase a meme (SAFU). Binance donates 10% of trading commissions to create physical protection.

The first serious test of SAFU occurred when hackers stole 7,000 BTC of Binance hot wallet in May 2019. The fund paid back every affected user instantly, leaving no trader who lost a satoshi.

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Bitcoin Conversion Strengthens Reserve Strategy

In January 2026, Binance transferred SAFU assets to Bitcoin to protect against fiat inflation. The fund still has a value of approximately $1 billion.

The majority of exchanges do not provide similar user protection. This gap was revealed by the fall of FTX in 2022. The reserve of Binance creates an industry standard.

The exchange makes periodic releases of proof-of-reserves. The holdings of Bitcoin can be audited by anyone, which creates credibility in centralized systems.

Regulatory Compliance Meets User Safety

Regulatory functions are now served by parts of SAFU. Abu Dhabi Global Markets needs capital reserves, and Binance maintains the fund beyond the minimum of $800,000.

Binance uses 10% of trading fees to deposit in the reserve continuously, replenishing reserves during times of downturns. In 2022, the fund bounced back to 1 billion.

The Bitcoin conversion cushions against currency devaluation and is consistent with the principles of sound money. This inflation hedge is appreciated by crypto users.

Binance keeps buying Bitcoin as declared. The 30-day deadline is being adhered to, and the exchange will provide updates to the community.

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