The company announced that they plan to buy bitcoins with USDC stablecoins within the next 30 days. They also clarified the procedure for replenishing SAFU in case of a drop in BTC value.
"If due to market volatility the fund's value falls below $800 million, Binance commits to adding bitcoins to restore the total assets to $1 billion. The mechanism is designed to ensure the fulfillment of the fund's primary protective function, despite fluctuations in BTC rates," the exchange promised.
What will happen if the Bitcoins purchased with SAFU funds become profitable, the exchange did not specify. Binance representatives called BTC a fundamental asset of the crypto ecosystem and described the company's decision as 'reflecting a strategic view, not a reaction to short-term market price fluctuations.'
SAFU was created in July 2018 to protect clients' funds on the crypto exchange in case of emergencies: hacker attacks, platform failures, and other unforeseen incidents. The formation of SAFU occurs through the allocation of a percentage of trading fees from Binance — initially, about 10% of the fees were directed to the fund. SAFU is managed by the licensed clearing company Nest Clearing and Custody.
Earlier, the owner of the controlling stake in Binance, Changpeng Zhao, stated that Bitcoin will reach a new historical price high this year. The main factor for growth should be the change in American legislation, the businessman explained.
