On Monday, Feb 9, Binance made another significant transfer of Bitcoin into its Secure Asset Fund for Users (SAFU). According to on-chain data, this transfer has added 4,225 BTC into the SAFU fund. The transfer was valued at approximately $299.6 million at recent market prices.
The total holdings within the SAFU fund have now reached approximately 10,455 BTC. At current valuations, this transfer is worth nearly $734 million. This is the first time that the SAFU wallet has accumulated more than 10,000 BTC.
This transfer is a part of Binance’s previously declared plan. The exchange declared that it would transfer approximately $1 billion worth of its holdings, currently held in stablecoins, into Bitcoin within a period of 30 days. This transfer is a part of that plan, aimed at providing greater security and transparency.
Binance Hot Wallet Moves Significant BTC to SAFU
According to blockchain data, this transfer originated from a Binance-controlled hot wallet. The transfer was made directly into the official SAFU wallet, indicating that it was internal rather than a direct market transfer.
On-chain analytics firm Lookonchain first identified the transaction. The firm has mentioned that several similar transactions were made earlier this week, transferring thousands of BTC into the SAFU wallet.
As a result, this transfer has enabled the SAFU wallet to hold significantly more BTC than before. The SAFU wallet was established after a security breach at Binance in 2019.
Also Read: Bitcoin (BTC) Weekly RSI Hits June 2022 Lows as Sell-Off Deepens
However, the exchange has continued to add more to the fund since its launch. A portion of the revenue is put into the fund. The aim is to create a buffer that can be used to cover potential losses.
Binance has revealed its plan regarding the conversion of its funds. In a statement released on X, the exchange said, “We’re continuing to acquire Bitcoin for the SAFU fund, aiming to complete conversion of the fund within 30 days of our original announcement.”
Bitcoin Holds $70K Despite Weekly Drop and Lower Volume
As of writing, Bitcoin is trading at $70,038. The price has shown a daily increase of 0.22%. However, the price has been declining more than 8% over the past week, according to CoinMarketCap data.
However, the trading volume of Bitcoin over the past 24 hours dropped by more than 16%. The total market capitalization is around $1.4 trillion.
However, data has revealed that the exchange did not buy Bitcoins through the public exchanges. The exchange instead sent the coins after transferring them internally. This process is not likely to interfere with the market.
This implies that the Bitcoin spot price remains unaffected. In fact, most of the transactions took place within the exchange. However, the accumulation is quite impressive.
The SAFU fund has reached a milestone of over 10,000 BTC. This is one of the biggest protection funds held by a centralized exchange.
Also Read: Binance SAFU Fund Adds 3,600 BTC Amid Bitcoin Recovery
Risk Disclosure: This article is for informational purposes only and does not constitute financial advice.
