Binance completes $1B Bitcoin SAFU conversion

Binance has completed its $1 billion conversion into Bitcoin for its Secure Asset Fund for Users, cementing BTC as the core reserve asset of its emergency protection fund.

The exchange purchased a final $304 million tranche on Thursday, bringing total holdings to 15,000 BTC acquired at an average cost basis of roughly $67,000 per coin.

“With SAFU Fund now fully in Bitcoin, we reinforce our belief in BTC as the premier long-term reserve asset,”

Binance said in a post on X.

The conversion was finalised in less than two weeks after being announced on January 30, with the exchange stating it would rebalance the fund should volatility push its value below $800 million.

The move comes amid extreme market pessimism, with the Crypto Fear and Greed Index falling to a record low reading of five following Bitcoin’s recent dip below $60,000.

Data from Nansen shows so-called smart money traders holding a cumulative $105 million net short position in Bitcoin, while Avalanche stood out as the only major token with notable net long exposure.

Despite elevated short positioning and a painful correction that left roughly 16% of Bitcoin’s market cap in loss territory, analysts note derivatives leverage remains muted, suggesting market structure may be stabilising rather than entering a renewed expansion phase.

At the time of reporting, Bitcoin price was $66,303.22.