- A $300M Bitcoin buy lifts SAFU reserves above $720M amid ongoing market weakness.
- Proof-of-Reserves allows platforms like Binance to show solvency without exposing detailed user data.
Binance announced that it added another 4,225 Bitcoin worth $300 million for its Secure Asset Fund for Users (SAFU). The acquisition lifts the fund’s Bitcoin holdings to more than $720 million, continuing the company’s experiment with a Bitcoin-backed protection fund as markets remain under pressure.
“We’re continuing to acquire #Bitcoin for the SAFU fund, aiming to complete conversion of the fund within 30 days of our original announcement,” Binance wrote in a Monday X post.
According to blockchain data from Arkham, this purchase is part of Binance’s plan to convert its $1 billion user protection fund into Bitcoin. Binance announced on January 30, 2026, that this change reflects the company’s long-term confidence in Bitcoin.
While the move signals conviction in Bitcoin’s futures, critics warn that it could expose the emergency reserve to increased volatility as crypto markets face a broader correction.
Bitcoin’s prices have fallen more than 40%, with investor sentiment described as fragile and “smart money” traders increasing short positions. Analysts warn that without a positive catalyst, further downside pressure could persist across major cryptocurrencies.
See Related: Japan Considers Crypto Rule Change Favouring Lower Taxes, Dedicated ETFs
How Binance’s SAFU Compares To Other Exchanges’ User Protection Models
Binance’s SAFU is currently one of the largest exchange protection pools, funded by trading fees and earmarked for extreme events such as hacks. Other major exchanges maintain protection mechanisms, with OKX reportedly holding roughly $700 million in its reserve. Coinbase offers insurance coverage for certain jurisdictions.
Proof-of-Reserves (PoR) is increasingly common, allowing platforms like Binance and OKX to cryptographically demonstrate solvency without exposing detailed user data. However, analysts emphasize that these approaches vary in transparency and actual guarantee and that there is no single model universally adopted as a gold standard.
