- Binance reduced its BTC holdings by 94.1% and ETH by 99.9%.
- Most assets were converted into USDC, with holdings increasing by 57.5%.
- Similar asset shifts occurred in June 2023 and February 2024, potentially linked to profit-taking or financial obligations.
Binance has significantly reduced its Bitcoin (BTC) and Ethereum (ETH) holdings, converting a large portion of these assets into the stablecoin USDC.
According to data shared by AB Kuai Dong, between January and February 2025, Binance’s BTC reserves fell from 46,896 to 2,747 (-94.1%). At the same time, its ETH holdings dropped from 216,313 to 175 (-99.9%).
At Bitcoin’s present price of $98K, the converted 44,149 BTC amounts to $4.32 billion. Likewise, the liquidated ETH tokens amount to approximately $584 million at $2,700 per coin.
The move appears to be a strategic asset conversion rather than a liquidity crisis. According to Colin Wu, Binance’s holdings shift mirrors previous instances in June 2023 and February 2024, when the exchange reportedly made similar moves.
USDC is Binance’s New Crypto Flavor of Choice
Notably, the majority of Binance’s converted assets have been moved into USDC, with its holdings increasing by 57.5%. Meanwhile, Binance’s native token, BNB, saw only a 16.6% reduction.
Related: Binance Impounds 94% of $12.5M Funds Stolen from Abducted Execs
Other assets, including Solana (SOL) and Tether (USDT), also saw significant reductions of 99% and 99.9%, respectively. FDUSD holdings were cut by 53.4%.
While Binance has not issued an official statement on the reason for the asset shift, industry experts speculate that it could be part of a profit-accrual strategy or a precautionary measure in response to regulatory uncertainties.
Past Binance Asset Shuffles Hint at Strategy
Looking back, similar large-scale asset conversions occurred in June 2023, when Binance paid regulatory fines, and later in February 2024, though the reasons weren’t clear. Some analysts believe these moves are just part of Binance’s overall financial strategy, making sure they have cash on hand while dealing with operational risks.
Worth noting, Dong clarified that the funds were Binance’s past revenue, not customer funds.
Related: Binance-WazirX Feud Escalates: Users Demand Clarity Over Frozen Funds
SEC Lawsuit on Pause?
In a related development, the U.S. Securities and Exchange Commission (SEC) and Binance have jointly filed a motion to pause their ongoing lawsuit for 60 days.
This request suggests the SEC’s newly formed crypto task force could be a factor in ironing out the case about security law violations.
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