Binance, the world’s largest cryptocurrency exchange, has taken action for its $1 billion move as Bitcoin ($BTC) experiences successive sharp declines.
At this point, Binance also completed a second round of purchases to convert its $1 billion stablecoin reserves in the SAFU fund into Bitcoin.
According to Arkham Intelligence data, Binance’s SAFU fund purchased an additional 1,315 $BTC, worth $100.42 million.
With its latest purchase, the Binance SAFU fund has increased its total purchases over the past two days to 2,630 $BTC, worth $201.12 million.
What Happened?
In late January, Binance announced it would be restructuring its Secured Asset Fund for Users (SAFU) and gradually converting its $1 billion worth of stablecoin assets into $BTC.
This transformation is planned to be completed within 30 days of the date of this announcement.
Binance will regularly review the asset value of the SAFU Fund. If the fund’s market capitalization falls below $800 million due to fluctuations in the Bitcoin price, Binance will inject additional $BTC to bring the fund back up to $1 billion.
*This is not investment advice.