Binance has started shifting its user protection fund into Bitcoin, beginning with a $100 million purchase during last week’s market downturn.
Records show the exchange bought 1,315 BTC at an average price of approximately $77,410, capitalising on the recent price dip.
This is the first phase of a plan to convert the entire $1 billion Secure Asset Fund for Users (SAFU) from stablecoins into Bitcoin over the next 27 days.
Established in 2018 using trading fees, SAFU serves as an emergency safety net for users during security breaches or extreme market volatility.
While the fund was previously held in stablecoins like USDC to maintain a steady value, this total shift into Bitcoin suggests that Binance is confident in the cryptocurrency’s long-term growth.
The move occurred as Bitcoin’s price fell below $75,000, leaving Binance with roughly $900 million left to spend on further Bitcoin purchases.
You need to login in order to Like
Leave a comment