Binance Adds 1,315 Bitcoin To SAFU Fund Amid Crypto Market Decline

TLDR

Table of Contents

Binance transferred 1,315 BTC worth $100.7M to SAFU amid market volatility.
SAFU’s BTC move is the first in nearly two years, according to blockchain data.
Binance aims to convert $1B of SAFU reserves from stablecoins to Bitcoin.
The SAFU fund will be topped up if its value drops below $800 million.

Binance has transferred 1,315 Bitcoin, worth about $100.7 million, into its Secure Asset Fund for Users (SAFU). The move is part of a broader plan to convert $1 billion worth of stablecoins into Bitcoin. This marks SAFU’s first BTC deposit in nearly two years and comes as Bitcoin’s price briefly dropped over the weekend before recovering.

SAFU Fund Receives Bitcoin After Nearly Two Years

Binance has transferred 1,315 Bitcoin, valued at approximately $100.7 million, into its Secure Asset Fund for Users (SAFU). The transfer was made early Monday and marks the first addition of Bitcoin to the fund since 2023.

TODAY: Binance Added 1,315 #Bitcoin worth $100.7M to their SAFU Fund
Binance is Converting $1B of its SAFU Fund into Bitcoin over the Next 30 days.
Binance Still Has $900 Million Remaining to Buy More Bitcoin pic.twitter.com/a07OTMEOEk
— Crypto Patel (@CryptoPatel) February 2, 2026

Blockchain tracking platform Arkham showed that the BTC came from a Binance hot wallet and was sent directly to a known SAFU wallet. There was no interaction with external wallets, suggesting this was an internal move to reclassify reserves.

Part of a Broader $1 Billion Plan

The transfer comes shortly after Binance announced a plan to convert $1 billion in SAFU reserves from stablecoins into Bitcoin. The conversion will take place over a 30-day period. Binance stated, “If the fund’s market value falls below $800 million due to BTC price fluctuations, Binance will rebalance the fund to restore its value to $1 billion.”

Though speculation had emerged about Binance becoming a major spot market buyer, the latest move does not appear to involve new Bitcoin purchases. Instead, the exchange is allocating Bitcoin it already held internally.

Bitcoin Price Recovers After Weekend Drop

Over the weekend, Bitcoin’s price dropped to nearly $74,000, reaching levels not seen since November. As of Monday, it had rebounded slightly to around $76,800 but remained 2.5% lower over the past 24 hours.

This market downturn affected retail sentiment. According to Stocktwits data, sentiment around BTC dropped to “extremely bearish,” and user message activity was recorded at “extremely high” levels. Other major tokens, including Binance’s BNB, also declined in value, with BNB down 2.7% in the same 24-hour period.

Increased Volatility for User Protection Fund

SAFU was created in 2018 to protect Binance users from losses caused by events like hacks or system failures. By converting the fund’s holdings into Bitcoin, Binance is exposing the reserve to market fluctuations. The company pledged to restore the fund if its value falls below $800 million.

Monday’s transaction suggests that the first step in Binance’s conversion plan has begun, though the Bitcoin used was likely already within the company’s control. The move effectively “ring-fences” this portion of its reserves for user protection.

The company has not confirmed if more Bitcoin will be added immediately, but has reiterated that the full $1 billion shift will be completed within weeks.

Crypto Market Faces Widespread Liquidations

The overall crypto market fell over 3% in the past 24 hours, with total market capitalization sitting around $2.66 trillion. Data from CoinGlass reported nearly $800 million in crypto liquidations during the same period.

Despite the volatile conditions, Binance’s recent action may be seen as part of a long-term strategy to shift its reserves away from stablecoins and align more closely with Bitcoin’s market value.