Binance’s emergency reserve fund, the Secure Asset Fund for Users (SAFU), is sitting on a paper profit of $217 million nearly three months after converting its stablecoin holdings into Bitcoin. The crypto asset climbed past $81,000 on Tuesday.
The fund built a 15,000 BTC position through four separate purchases over 13 days earlier this year, with an average cost basis of $67,000. The stash is now worth over $1.2 billion. Binance says it may rebalance the fund if its value drops below $800 million.
Bitcoin remains volatile, down 7% year-to-date and about 35% off its $126,000 peak set last October.
Binance created SAFU in July 2018 after a series of early exchange hacks, funneling 10% of all trading fees into the reserve. For years, the fund sat mostly in stablecoins. The decision to swap into Bitcoin reflects a strategic bet on long-term value over stablecoin stability.