Binance has bought another 4,545 Bitcoin worth $305,000,000 for its ‘SAFU’ fund, according to Arkham Intelligence monitoring data. This latest purchase increases the total value of 15,000 BTC held by the Reserve Wallet to approximately $1.005 Billion. Binance previously bought $100M in Bitcoin Last week.
“With SAFU Fund now fully in Bitcoin, we reinforce our belief in BTC as the premier long-term reserve asset,” Binance posted a reply to X.
Binance’s Secure Asset Fund for Users, or SAFU, was previously stored in stablecoins. SAFU, originally designed as a mechanism for users to be protected in the case of security breaches or unplanned losses, was initially created. In April 2024 the decision was made to transfer the emergency insurance fund into BTC, rather than into a dollar pegged asset. It reversed this position and transferred approximately $1 billion in user protection funds into the crypto with the highest market capitalization. BTC has dropped to below $66,000, or a drop of 30%, in just one month.
Binance stated that, if market fluctuations or legal fees cause the value of the fund to fall below $800,000,000 it will automatically top up the amount to $1 Billion. Mixed reactions have been received by the decision to switch from stablecoins into BTC. Some see the conversion from stablecoins to BTC as a sign of trust in Bitcoin’s value over the long term, while others argue that the move away from stablecoins will increase volatility.
Also Read: VeChain Surges 7% In 24 Hours, Outshines Bitcoin And Ethereum
Bitcoin (BTC), according to many experts, is expected to reach another record high in 2018. Bernstein and Grayscale assert that the crypto’s original path is a 5 year trajectory, not a typical 4 year one. The asset may reach a new high this year. This is five years after the all-time peak of 2021.
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Source: watcher.guru
