Binance Converts $1B SAFU Fund Entirely Into Bitcoin, Surpassing Coinbase in BTC Holdings

$1B SAFU Fund Now Pure BTC

Binance has finalized the conversion of its Secure Asset Fund for Users (SAFU) into bitcoin, shifting the entire $1 billion emergency reserve from a mix of assets into 15,000 BTC.

Previously, SAFU held a blend of stablecoins and other cryptocurrencies, but Binance executed multiple purchases, including two separate tranches of 1,315 BTC (each worth about $100 million), a 3,600 BTC batch for $250 million, and another acquisition of 4,225 BTC for $300 million. As a result, the reserve reached its target size ahead of schedule—finalizing all purchases in less than two weeks instead of the full month initially allotted.

The transition was completed within a 30-day window following Binance’s announcement on January 30.

Emergency Reserve Climbs Top BTC Holders

With the latest purchase, Binance’s SAFU fund now holds more bitcoin than Coinbase’s treasury account. According to coingape.com, Binance’s 15,000 BTC puts it ahead of Coinbase’s 14,548 BTC and even surpasses national holdings such as North Korea’s estimated 13,562 BTC and Bhutan’s 10,769 BTC. The fund's rapid accumulation has placed it among the world’s ten largest known bitcoin treasuries.

On paper this is simply a reserve shuffle—but in practice it places Binance among the most significant institutional holders of bitcoin globally.

The acquisitions were made during a period when bitcoin traded between $66,006 and $70,000. The final tranche alone was executed at roughly $66,939 per coin. While this concentration in a single asset marks a distinct shift from the prior diversified approach using stablecoins like USDT or BUSD, Binance stated that this demonstrates its confidence in bitcoin as a long-term store of value.

Big Bitcoin Buy Amid Market Fear

Binance completed one of its largest purchases—$304 million worth of bitcoin—on Thursday. This came just three days after another $300 million acquisition earlier in the week. Notably, these transactions occurred as the crypto market sentiment index from alternative.me fell to five on Thursday—the lowest reading ever recorded—signaling extreme fear among investors across digital assets.

Despite this climate of caution and volatility in early February, Binance pressed forward with its plan to convert all SAFU assets into bitcoin. The company transferred 1,315 BTC (about $100 million) from hot wallets into the fund on February 2 as part of this process. It’s unclear whether the timing was intended to capitalize on lower prices or simply to meet the self-imposed deadline for conversion.

While some might question concentrating user protection funds into one volatile asset during turbulent markets, Binance has pledged to replenish SAFU should its value drop below $800 million due to price swings.

Why Binance Ditched Stablecoin Backing

The rationale behind moving away from stablecoins and denominating SAFU entirely in bitcoin appears twofold: simplicity and conviction. Stablecoins offer price stability but depend on third-party issuers and can face regulatory scrutiny or depegging risks. By contrast, holding only bitcoin removes counterparty risk but introduces exposure to price volatility—a risk that Binance says it will manage by topping up the fund if needed.

For users whose funds are protected by SAFU in case of exchange breaches or emergencies, this change means their safety net now fluctuates directly with bitcoin’s market price rather than being buffered by stable assets. Whether this signals increased confidence or simply higher risk tolerance remains open to debate.

What comes next

If the value of Binance's SAFU fund, now fully held in 15,000 BTC, drops below $800 million due to market volatility, Binance has pledged to replenish it; whether such a replenishment will be required remains unclear and will depend on future Bitcoin price movements.