Binance SAFU Fund BTC Holding Unrealized Loss Narrows to 2.7%, Still $550 Million to be Bought

Binance’s Secure Asset Fund for Users (SAFU) has continued its Bitcoin (BTC) accumulation strategy in recent days. The fund added 1,315 BTC to its holdings on February 2, followed by another 1,349.9 BTC on February 4. Both purchases valued the Bitcoin at around $100 million each, bringing the total recent acquisitions to 2,630 BTC worth $201.12 million.

The purchases are part of Binance’s broader plan to convert its $1 billion SAFU fund from stablecoins to Bitcoin within 30 days. The strategy was first announced on January 30, 2026, and is being executed in tranches to avoid excessive market impact. The fund now holds approximately 6,230 BTC in total.

The fund’s holdings have also seen a narrowing in unrealized losses. As of February 8, the unrealized loss has decreased to 2.7%, indicating that the price of Bitcoin has stabilized slightly. Despite this, the fund still holds $800 million in USDC, ready for further Bitcoin purchases as the strategy progresses.

Why Did This Happen?

Binance is shifting its SAFU fund toward Bitcoin to reduce counterparty risk from stablecoin issuers. This move aligns with the company’s long-term strategy of positioning Bitcoin as a neutral reserve asset. The fund will continue to operate as an insurance backstop for users in the event of extreme events.

The decision to buy Bitcoin during a market downturn also suggests Binance is capitalizing on low prices to strengthen its balance sheet. On February 2, Bitcoin traded near $77,400, and the fund took the opportunity to accumulate at a favorable average price.

How Did Markets React?

Despite the $200 million in Bitcoin purchases, the market response has been relatively muted. Bitcoin’s price remained in a narrow range between $76,300 and $76,700 as of February 4. The gradual pace of the SAFU fund’s purchases, averaging about $33 million per day, is seen as insufficient to move the market in the short term.

Market observers also note that much of the Bitcoin being moved into the SAFU fund is being reclassified from existing Binance holdings rather than being newly purchased from the spot market. This internal reallocation means that the fund is not adding fresh demand to the market.

What Are Analysts Watching Next?

Analysts are paying close attention to whether Binance’s continued Bitcoin purchases will provide structural support for the asset. While the fund is not explicitly designed to prop up prices, its consistent buying could indirectly stabilize the market during periods of high volatility.

The fund’s transparency remains a key point of interest. All Bitcoin purchases are being sent to a publicly disclosed address (1BAuq7Vho2CEkVkUxbfU26LhwQjbCmWQkD), allowing for independent verification of the transactions. This level of transparency helps build trust with users.

Binance has also committed to maintaining the SAFU fund’s value above $1 billion. If the fund’s value drops below $800 million due to a Bitcoin price decline, the exchange will top it up using its own reserves. This pledge adds an additional layer of protection for users during sharp market drawdowns.

The fund’s activity is also being closely monitored by traders who believe it could influence broader market sentiment. Some analysts suggest that Binance’s consistent demand for Bitcoin could help counterbalance large liquidation events that often occur during volatile periods.