💥Binance starts converting the SAFU fund of 1 billion USD to Bitcoin
- Initiated with a purchase of BTC worth approximately 100 million USD. This move shows that the world's largest exchange is gradually shifting its reserve fund from stablecoins to its core digital asset, Bitcoin.
- According to a representative of Binance shared with Cointelegraph on Friday, the SAFU fund will continue to be maintained as a protective measure for users in case of serious incidents or unexpected losses.
- The SAFU fund was established by Binance in 2018 and is funded by a portion of trading fees on the exchange, aiming to protect user assets. Previously, in 2024, Binance had converted the stablecoin portion of the SAFU fund from BUSD to USDC to ensure liquidity, stability, and price pegging with the USD.
- However, with the new strategy, Binance plans to completely eliminate stablecoins from the SAFU fund, turning this emergency fund into one that is 100% held in Bitcoin. Currently, the exchange still has about 900 million USD in purchasing power, reserved for continuing to allocate BTC in the coming time.
- This move occurs in the context of the cryptocurrency market experiencing strong volatility after a large-scale sell-off, causing Bitcoin's price to drop below 75,000 USD at times. Binance's increased buying during this correction is also seen as consistent with the strategy of 'buying when prices drop,' similar to the long-term investment perspective of Michael Saylor, thereby demonstrating the strong confidence of major institutions in Bitcoin.
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