- Binance bought $235 million in Bitcoin as part of its planned $1 billion SAFU fund conversion.
- The exchange completed a second $100 million stablecoin-to-Bitcoin conversion tranche this week.
- SAFU fund changes follow insolvency rumors, which Binance and Changpeng Zhao have denied.
Binance has purchased another $235 million worth of Bitcoin for its Secure Asset Fund for Users (SAFU), advancing its plan to convert $1 billion of the fund’s reserves from stablecoins into BTC.
This follows a previous purchase on Wednesday, Binance confirmed that it had acquired an additional 1,315 BTC for the SAFU Fund. According to on-chain data from Arkham, the transfer occurred on February 4 and was valued at approximately $100.42 million at the time of execution. The exchange stated that the transaction completed another phase of its stablecoin-to-Bitcoin conversion process.
Binance publicly confirmed the transaction, stating that the second $100 million tranche of stablecoins had been fully converted into Bitcoin. The exchange reiterated that the conversion process remains on schedule and is expected to conclude within 30 days of its initial announcement.
Conversion Strategy and Fund Parameters
The SAFU Fund was established to protect users in the event of unforeseen incidents such as security breaches. Under the updated framework, Binance is transitioning the fund’s reserves from stablecoins to Bitcoin while maintaining a target valuation of $1 billion.
According to the exchange, if market fluctuations cause the fund’s value to fall below $800 million, additional capital will be added to restore it to the $1 billion threshold. Binance has also stated that the fund will remain subject to regular audits throughout the conversion period.
Insolvency Rumors and Reserve Activity
The SAFU fund activity comes as Binance continues to address insolvency-related speculation circulating in the market. The exchange has retained its routine proof-of-reserves disclosures, which indicate assets exceeding user balances. Temporary withdrawal suspensions earlier this year heightened market concerns, though Binance later said it had resolved the underlying technical issues.
Changpeng Zhao publicly rejected claims of insolvency and cautioned users about misleading information, including fabricated images and inaccurate reports.
Related: Binance Converts SAFU Reserves to Bitcoin with $100 Million Buy
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Source: https://coinedition.com/binance-buys-235-million-worth-of-bitcoin-for-safu-fund/
