Bitcoin experienced heightened volatility over the weekend, with sharp intraday price swings driven by broader market uncertainty and thin weekend liquidity. 

The moves prompted renewed discussion around exchange risk management, liquidity, and reserve transparency as market participants assessed potential sources of selling pressure.

Against that backdrop, Binance transferred approximately 1,315 Bitcoin, valued at about $100 million at the time of the transaction, into its Secure Asset Fund for Users (SAFU), according to on-chain data. 

As part of its SAFU restructuring plan, Binance reallocated Bitcoin internally, with on-chain data showing no interaction with external wallets.

Binance said in a post on X, “Binance has completed the first batch of Bitcoin conversion for the SAFU Fund, amounting to 100M USD stablecoins. We’re continuing to acquire Bitcoin for the SAFU fund, aiming to complete conversion of the fund within 30 days of our original announcement.”

SAFU was created to protect users from losses related to unforeseen events such as hacks. 

Under the restructuring plan, Binance said it would convert roughly $1 billion of the fund’s stablecoin reserves into Bitcoin and replenish the fund if its value falls below $800 million due to price volatility.

The announcement initially led to speculation that Binance would become a large buyer of Bitcoin. 

However, the observed on-chain activity suggests that the first step involved allocating Bitcoin already held by the exchange rather than purchasing new supply.

The move has drawn mixed reactions from market participants. Some analysts and social media users questioned whether the transfer represented new demand for Bitcoin, while others criticized Binance’s broader influence on market structure. 

Former CEO Changpeng “CZ” Zhao has also faced renewed scrutiny following prior public comments on market cycles, which some critics cited as inconsistent and poorly timed.

Zhao and Binance have rejected claims that the exchange caused recent market volatility, attributing price movements to external and macroeconomic factors.

By shifting SAFU’s backing from stablecoins to Bitcoin, the fund’s value will now fluctuate with market prices. 

Binance has stated that regular rebalancing will be used to maintain the fund’s target size as the conversion process continues.

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