Trusting Crypto Over the Dollar? Binance Goes All-In on Bitcoin With $1 Billion Fund

▲ Changpeng Zhao (CZ), Binance, Bitcoin/AI-generated image ©

Binance, the world’s largest cryptocurrency exchange, has filled the portfolio of its Secure Asset Fund for Users (SAFU) entirely with Bitcoin, demonstrating strong long-term confidence in Bitcoin despite the recent price downturn.

According to crypto-focused media outlet Watcher.Guru on February 12 (local time), monitoring data from Arkham Intelligence confirmed that Binance recently purchased an additional 4,545 Bitcoin (BTC) worth approximately $305 million. With this large-scale acquisition, Binance’s reserve wallet holdings have reached a total of 15,000 BTC, valued at about $1.005 billion. This follows a $100 million Bitcoin purchase made just last week.

Binance announced on social media platform X that the SAFU fund is now fully composed of Bitcoin, reaffirming its belief that Bitcoin is the best long-term reserve asset. SAFU is an emergency reserve established to protect users in the event of hacks or unforeseen losses. Initially operated primarily with stablecoins, the fund has shifted its strategy, deciding to allocate approximately $1 billion in protection funds directly into Bitcoin, the largest cryptocurrency by market capitalization, instead of dollar-pegged assets.

Notably, this purchase was made at a time when Bitcoin’s price had fallen 30% over the past month, threatening the $65,000 level. Binance has also implemented a safeguard mechanism that will automatically replenish the fund back to $1 billion if its value drops below $800 million due to market declines or legal expenses.

Market reactions to this shift from stablecoins to Bitcoin have been mixed. Some interpret it as a clear signal of strong support for Bitcoin’s long-term value, while critics argue that using a highly volatile asset as an emergency reserve could increase risk.

Meanwhile, major analytical institutions such as Bernstein and Grayscale have suggested that Bitcoin is following a five-year cycle rather than the traditional four-year cycle. They project that, five years after reaching its all-time high in 2021, Bitcoin is likely to set a new all-time high (ATH) again this year.

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