Binance Converts $1 Billion SAFU into Bitcoin
Binance has completed its conversion of the Secure Asset Fund for Users (SAFU) into Bitcoin, fulfilling a $1 billion target. The fund's entire position is now denominated in BTC, with Binance pledging to replenish reserves if market volatility pushes the value below $800 million.
The exchange acquired 4,545 additional Bitcoin at an average cost basis of $67,000 per coin, bringing total SAFU holdings to 15,000 Bitcoin. This represents a significant reallocation into BTC, with Binance describing the shift as reinforcing its belief in Bitcoin as the premier long-term reserve asset for institutional holdings.
The conversion took place despite broader market sentiment remaining deeply negative, with the Crypto Fear and Greed index plummeting to five on Thursday, the lowest reading on record. This has led to significant token supply at a loss equivalent to 16% of Bitcoin's market cap, according to Glassnode.