Binance SAFU converts $1B stablecoin reserve to BTC, buys additional 3,600 BTC

Published: 2026-02-06 08:05:27 |

Binance’s SAFU (user protection) fund is converting a $1 billion stablecoin reserve into Bitcoin over a 30‑day plan and has continued accumulation. On‑chain tracker Arkham reports an additional purchase of 3,600 BTC (≈$233M), bringing the SAFU address balance to about 6,230 BTC (≈$403M). Earlier reports show prior tranches totaling ~2,630 BTC bought across Feb 2–4, executed gradually to limit market impact. Binance says it will top up BTC if the fund’s value falls below $800M, targeting a roughly $1B reserve. The shift from fiat‑backed stablecoins to BTC reduces counterparty stablecoin risk and signals a strategic, market‑supportive stance by a major exchange. For traders: this creates structural demand and reduces available on‑chain BTC liquidity, implying potential support/floor narratives tied to Binance’s reserve policy. However, effective price impact depends on the pace of further buys, execution strategy, market depth, and broader macro conditions. Primary keywords: Binance, SAFU, Bitcoin, BTC, stablecoin reserve. Secondary keywords: Arkham, liquidity, market support, risk management.

Bullish

The conversion of a $1B stablecoin reserve into BTC and the confirmed additional buy of 3,600 BTC represent deliberate, structural demand for Bitcoin from a major exchange. This reduces available on‑chain BTC supply and signals an institutional‑scale buyer that can act as a psychological and technical support level—especially because Binance has committed to top up the fund if its value falls below $800M. In the short term, disciplined accumulation and gradual execution limit immediate market shocks but still tighten liquidity, which can increase price sensitivity to further buys and create upward pressure during thin markets. In the medium to long term, maintaining a ~$1B BTC reserve institutionalizes recurring buy pressure and lowers counterparty stablecoin risk, supporting a bullish narrative for BTC. Offsetting factors include execution pace, market depth, macro drivers (rates, risk appetite), and potential liquidations; these determine how strongly the purchases translate into sustained price gains rather than transient support.