Binance said it has completed converting its $1 billion Secure Asset Fund for Users (SAFU) into bitcoin, making BTC the fund’s core reserve asset.
The exchange bought an additional $304 million of Bitcoin on Thursday, finishing the conversion in less than two weeks, according to Arkham data.
SAFU conversion details
Binance said the SAFU wallet now holds 15,000 BTC, worth more than $1 billion, at an average aggregate cost basis of about $67,000 per coin.
The exchange wrote on X:
“With SAFU Fund now fully in Bitcoin, we reinforce our belief in BTC as the premier long-term reserve asset.”
The final purchase followed a prior roughly $300 million acquisition announced on Monday.
Binance first said it would convert the fund on Jan. 30 and initially outlined a 30-day window.
Binance also said it would rebalance the fund if volatility pushes its value below $800 million.
Sentiment hits record low
The move comes as crypto sentiment remained deeply negative after bitcoin briefly fell below $60,000 on Feb. 5.
The Crypto Fear & Greed Index fell to 5 on Thursday, its lowest reading on record, according to the Bitcoin fear and greed chart.
Traders hedge for more downside
Nansen data showed “smart money” traders were net short bitcoin by a cumulative $105 million and net short most major tokens.
Glassnode said the correction pushed coins at a loss to an amount equal to 16% of bitcoin’s market cap, the highest pain point since Terra’s collapse in May 2022.
