Binance has completed the full conversion of its $1 billion emergency insurance fund into Bitcoin, reinforcing its stance on BTC as a long-term reserve asset despite worsening crypto market sentiment.
On Thursday, on-chain data from Arkham Intelligence showed that the exchange acquired an additional $304 million worth of Bitcoin, bringing the Secure Asset Fund for Users (SAFU) entirely into BTC.
#Binance SAFU Fund Asset Conversion – Final Update
Binance has successfully completed the final tranche purchase of 4,545 BTC, finalizing the $1 billion transition of SAFU stablecoin reserves into Bitcoin.
This transition was completed within 30 days of the initial… pic.twitter.com/NJbNPS1b0I
— Binance (@binance) February 12, 2026
According to Binance, the SAFU wallet now holds 15,000 BTC, valued at over $1 billion, with an average acquisition price of around $67,000 per coin. The exchange said the move reflects its confidence in Bitcoin as the “premier long-term reserve asset.”
Binance doubles down on Bitcoin reserve strategy
The purchase finalizes a plan first announced on January 30, when Binance said it would shift the fund into Bitcoin within 30 days. The process was completed in under two weeks.
The latest acquisition follows a $300 million BTC purchase earlier this week. Binance also noted it would rebalance the fund if volatility causes its value to fall below $800 million.
The decision to consolidate SAFU into Bitcoin marks a strategic shift in how Binance structures its user protection reserves. By holding BTC instead of a mix of assets, the exchange appears to be prioritizing liquidity, transparency, and long-term store-of-value characteristics.
Extreme fear grips crypto markets
Market sentiment has fallen to historic lows. Data from Alternative.me shows the Crypto Fear and Greed Index dropped to 5, its lowest level on record, signalling extreme fear among investors.
Meanwhile, so-called “smart money” traders tracked by Nansen are positioning defensively. These traders currently hold a combined net short position of $105 million in Bitcoin and are net short across most major cryptocurrencies. Avalanche (AVAX) stands as the only notable exception, with $10.5 million in net long exposure.
Blockchain analytics firm Glassnode also reported that recent price declines have pushed 16% of Bitcoin’s market cap into unrealized losses, the most severe supply stress since the Terra collapse in May 2022.
Enjoyed this piece? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
