Binance, one of the world's largest cryptocurrency exchanges, announced the completion of its second major Bitcoin (BTC) purchase for its SAFU (Secure Asset Fund for Users) fund, created to protect user funds. The company, which is gradually implementing its plan to convert its stablecoin assets, totaling $1 billion, into Bitcoin, stated that it will purchase additional BTC if the fund's value falls below $800 million. The SAFU fund was initially established in 2018 as an "insurance fund" against market volatility and security vulnerabilities. Its funding comes from small transaction fees deducted from transactions on the Binance platform. The company's latest move marks a significant change in the fund's structure: Binance now prefers to hold fund assets in Bitcoin rather than stablecoins. Recently, an additional 1,315 Bitcoins were added to the fund's wallet, bringing the total Bitcoin balance for SAFU to 2,630. While it was stated that these transfers did not have a direct impact on market prices, the transactions were carried out directly between the company's internal wallets, not via market orders. At the time of the transfer, the price of Bitcoin was hovering around $76,000.
Binance plans to convert all $1 billion worth of stablecoins in its SAFU fund to Bitcoin by the end of the month. This is thought to both preserve the long-term value of the fund and reflect optimistic expectations regarding the value of Bitcoin. In the market, this move was interpreted as Binance once again emphasizing its confidence in the cryptocurrency ecosystem.
Clear response to bankruptcy rumors
Binance is also dealing with bankruptcy claims that have flared up again in recent weeks. The company stated that it regularly publishes proof of reserves reports supporting user deposits and that these reserves more than cover user balances. It was also explained that the recent short-term withdrawal problems were due to technical reasons and that the issue has been resolved. Binance CEO Changpeng “CZ” Zhao dismissed claims circulating on social media that the exchange was "going bankrupt" as "FUD" (fear, uncertainty, doubt) and warned users against misinformation spread through fake images. On-chain data also shows no significant capital outflow from the exchange. According to CryptoQuant data, the exchange still holds 656,736 BTC in its wallets. Furthermore, the withdrawal of 6,156 BTC from Binance's cold wallets in the last week was reported as part of normal operational activities. Despite market fluctuations, Binance's reserves show no net decrease. Analysts note that increased investments by large investors (whales) indicate continued confidence in the exchange. Binance's native token, BNB, is trading at around $755.
The company is also expanding its SAFU fund to guarantee the safety of user assets in the event of potential market crashes or technical glitches.
