Binance Completes $1 Billion Swap Into Bitcoin in Two Weeks

▲ Bitcoin (BTC)

Binance has completed a strategic move reflecting its confidence in Bitcoin’s potential as a powerful store of value by converting its entire $1 billion user protection fund into Bitcoin (BTC).

According to cryptocurrency-focused outlet Cointelegraph on February 12 (local time), the global crypto exchange finalized the replacement of the Secure Asset Fund for Users (SAFU) holdings from previously held stablecoins to 100% Bitcoin.

The asset conversion was executed over roughly two weeks following the announcement of the plan on January 30. Through four large-scale accumulation phases, Binance acquired a total of 15,000 BTC, restructuring the entire fund to approximately $1 billion. In the final stage, the exchange invested about $304.58 million to purchase an additional 4,545 BTC, reaching its target.

Binance stated that the decision was made based on its assessment that Bitcoin is the most resilient asset capable of preserving purchasing power over the long term despite market volatility. Eliminating stablecoins such as USDC, which were previously held to stabilize the fund’s value, and consolidating entirely into Bitcoin symbolizes the exchange’s strong conviction in the foundational asset of the crypto ecosystem.

CEO Richard Teng emphasized that Bitcoin is a globally recognized core asset and that the conversion represents the best choice for protecting user funds. Teng added that Binance will adhere to a strict rebalancing principle, immediately replenishing the fund to maintain the $1 billion level if its total value falls below $800 million due to Bitcoin price fluctuations.

Industry observers believe this move could prompt significant changes in reserve management strategies among other major exchanges. With the full conversion of such a substantial reserve into Bitcoin now completed, global investors are closely watching how Binance’s risk management capabilities will be evaluated during future periods of extreme market volatility.

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