Crypto: Binance Adds $300m In Bitcoin To Safu Reserve During Market Dip

Binance bought $300 million in Bitcoin for its SAFU reserve, pushing the fund past $720 million as the exchange shifts its emergency buffer to BTC.

Binance added another $300 million worth of Bitcoin to its emergency reserves on Monday, continuing its experiment with a Bitcoin-backed protection fund as markets remain under pressure.

Binance bought another 4,225 Bitcoin (BTC) worth $300 million for its Secure Asset Fund for Users (SAFU) wallet, which holds its emergency reserves, according to blockchain data platform Arkham.

The acquisition lifts the fund’s Bitcoin holdings to more than $720 million at current prices.

“We’re continuing to acquire #Bitcoin for the SAFU fund, aiming to complete conversion of the fund within 30 days of our original announcement,” Binance wrote in a Monday X post.

While the acquisition is a sign of confidence in Bitcoin by the world’s largest exchange, it also exposes Binance’s emergency fund to downside volatility of Bitcoin’s price swings, which could reduce the fund’s total value.

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Binance first announced shifting $1 billion of its user protection fund into Bitcoin on Jan. 30, framing it as an expression of its conviction in Bitcoin’s long-term prospects as the leading crypto asset.

Binance said it would rebalance the fund back up to $1 billion if the market volatility drove its value below $800 million.

Related: BitMine nears $7B in unrealized losses as Ether downturn pressures treasury firms

Source: CoinTelegraph