On Thursday, Feb 12, Binance made another significant transfer of Bitcoin to its SAFU reserve fund. The latest contribution to the reserve fund comprises 4,545 BTC. The value of the latest contribution is approximately $304 million. The SAFU reserve fund now holds almost 15,000 BTC.
The purchase is part of a $1 billion conversion program. The program was announced by Binance on January 30.
Under the program, the stablecoin reserves of the platform were converted to Bitcoin over a 30-day period. The blockchain data platforms tracked all the transactions carried out under the program.
Binance Finalizes SAFU Conversion Steps
The program was completed even when the Bitcoin price was falling. Binance went ahead and completed each phase of the program within the stipulated period. The transactions were tracked by various analytics platforms, including Arkham.
The SAFU reserve fund is a user protection reserve fund of Binance. The fund was created using a portion of the trading fees of the users.
The fund is used to offer assistance to users in the event of a significant security problem. The reserve fund is expanded over time through contributions made by the company.
The reserve used to have stablecoins and other such assets. Binance decided to change that. They decided to invest more in Bitcoin. This is because of their long-term strategy of replacing the stablecoins in their reserve with Bitcoins.
Also Read: Bitcoin Struggles Below $72K As Weak Demand Caps Recovery
Final BTC Purchase Completes SAFU Strategy
The investment is a result of the company’s strategy to have a reserve with a large on-chain asset base. The company has not revealed further details on any future reserve strategy. The company only revealed that it completed the 30-day program.
The recent purchase marks the final step in the process. The 4,545 BTC transaction is the last large transaction of the strategy under the plan. The SAFU fund’s total Bitcoin reserves are now near the $1 billion mark.
Source: Arkham
The analytics firms revealed that all the transactions were from Binance’s wallets. The transactions were consistent throughout the strategy’s 30-day period. The company did not announce any updates to the strategy’s timeline.
The SAFU fund has a consolidated structure with Bitcoin as the base. This strategy has been completed within the stated period. On-chain data confirms the completion of the strategy and the new reserve composition.
Risk Disclosure: This article is for informational purposes only and does not constitute financial advice.
Also Read: Binance Bolsters SAFU with Massive $300M Bitcoin Buy Amid Market Turmoil
