"Binance will convert approximately 1 billion USD of the SAFU fund's stablecoin reserves into BTC, and this process will be completed within the next 30 days.
The SAFU Fund will be periodically rebalanced based on market value. If the price volatility of BTC causes the fund's value to drop below 800 million USD, Binance will supplement it to bring the value back to 1 billion USD.
We believe that Bitcoin is the foundational asset of this ecosystem and is the leading long-term store of value.
Through this move, we accept the market cycle and continue to accompany the industry, just as we have always done. This is part of our long-term commitment to building the future of cryptocurrency.
There will be more updates soon. Binance will continue to act with practical steps, driving the industry forward through openness, transparency, and long-term commitment.
According to Steve, Binance announced the purchase of 1 billion USD in BTC just at the right time, addressing two immediate issues:
- Market confidence in Binance has declined following the incident on 10/10, many people yesterday still mentioned how Binance manipulated the market on that day.
- The market is very bad, user sentiment is frustrated, and they do not want to trade anymore. Binance's good news could stimulate trading activities, while Binance is ready to hold BTC at this price in the long term.
