Binance announced the completion of the transformation of its SAFU fund, which involved converting one billion of its reserves into Bitcoin (BTC). The exchange stated that SAFU now holds approximately 15,000 BTC, with an average acquisition cost of around $67,000 per coin.
The conversion of Binance’s SAFU fund was executed over approximately 30 days, following the announcement made on January 30. According to the exchange, the process was carried out in managed tranches to minimize market impact.
The first step in this conversion was when Binance acquired approximately 1,350 BTC for around $100 million, at a price close to $74,074 per BTC. Subsequently, intermediate tranches totaling around 9,105 BTC, equivalent to approximately $595.4 million, were executed throughout the conversion window.
Finally, on February 12, 2026, Binance completed the last purchase with a tranche of 4,545 BTC, for approximately $304.6 million, at a price close to $67,000 per BTC. Overall, the operation reached an estimated average purchase price of around $67,000 per unit, thus consolidating the fund’s complete transition to Bitcoin.
Why did Binance convert its SAFU fund?
Binance described this reallocation as a measure intended to strengthen the SAFU as a long-term reserve asset and improve transparency by denominated the fund directly in Bitcoin. The company also committed to replenishing the fund if its value falls below an $800 million threshold, a mechanism designed to preserve its protective function against operational contingencies or extreme events.
From an operational standpoint, the phased execution aimed to limit price slippage and avoid significant market distortions. However, the different purchase levels highlight the main trade-off of this decision: while Bitcoin offers depth and liquidity as a reserve asset, it also introduces considerable volatility compared to stablecoins.
Binance confirmed the completion of the process on February 12, 2026, and noted that it will continue to conduct regular audits and rebalancing to manage the fund’s risk profile. Consequently, market participants will be closely monitoring both Bitcoin’s price movements and any adjustments to the SAFU structure, as both factors will directly influence the exchange’s perceived resilience and solvency in the face of future volatility.
