Binance Adds 1,315 BTC to SAFU Fund Amid $1B Conversion Plan

Highlights:

• Binance adds 1,315 BTC worth $100.42 million, SAFU fund reaches 2,630 BTC.
• The exchange is converting $1B in stablecoins into Bitcoin to secure the fund. 
• Michael Burry warns Bitcoin’s 40% fall since October signals a possible “death spiral.”

Binance, the world’s largest cryptocurrency exchange, confirmed on Wednesday that it bought 1,315 more Bitcoin for its Secure Asset Fund for Users (SAFU). This purchase, worth about $100.42 million, is part of a plan to convert $1 billion from stablecoins into Bitcoin after the recent market drop. This is Binance’s second big purchase this week. With it, the SAFU fund now holds 2,630 BTC, valued at around $201.12 million. Data from Arkham on February 4 shows Binance is focused on strengthening user protection during high market volatility.

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Binance Plans Full $1B SAFU Fund Conversion to Bitcoin

In late January 2026, Binance started a conversion plan to move its full $1 billion SAFU fund from stablecoins to Bitcoin within 30 days. The first transfer was completed on February 2, sending about 1,315 BTC worth roughly $100 million.

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The SAFU fund started in 2018 as a safety pool for users, funded by trading fees. At first, Binance held stablecoins like BUSD and later USDC. Now, it has fully shifted to Bitcoin, seeing it as a long-term store of value. This change makes the fund a protective measure during market drops, though Binance may need to add more if prices keep falling.

Binance’s SAFU fund moves happen amid ongoing insolvency rumors. The exchange still shows reserves higher than user balances. A short withdrawal halt sparked concern, but the problem has been resolved. CZ Zhao denied all insolvency claims and cautioned against fake reports and images. The exchange holds 656,736 BTC in total. Last week, it moved 6,156 BTC from its cold wallet, following normal patterns without panic.

Bitcoin Drops Further Despite Binance Adding More Reserves

Bitcoin prices stay under pressure even as Binance adds more reserves. The cryptocurrency fell 3% in the past 24 hours, trading at $76,050, with a low of $72,897 and a high of $78,974. Overall, market sentiment is “extreme fear,” and liquidity is thin. Experts like Michael Burry warn of bigger risks. He says the downturn could hit companies holding large Bitcoin amounts and affect traditional markets.

Since October, Bitcoin has dropped about 40% in value. This sharp fall has worried investors across the industry. Michael Burry, who correctly predicted the 2008 housing crash, called Bitcoin’s current trend a “death spiral.” He warned that companies holding large amounts of Bitcoin could face serious financial problems.

Burry also said Bitcoin does not act like traditional hedges such as gold or silver. Normally, when the US dollar weakens, precious metals rise in value. But Bitcoin has not followed this pattern. He added that another 10% drop could hit Strategy, the largest corporate Bitcoin holder, very hard. This could cause big losses and limit access to funding. 

He also cautioned that the mining firms may be forced to contend with even more pressure if the prices keep falling. This is because the falling prices coupled with the increasing costs may pose a challenge for the mining firms. This, therefore, adds another level of risk in the crypto market.

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