PA Daily Report | Binance SAFU Fund adds $300 million to Bitcoin holdings; digital asset investment products saw a net outflow of $187 million last week.

Today's top news highlights:

1. South Korea will launch a special investigation into cryptocurrency price manipulation and plans to introduce punitive fines for IT incidents.

2. Tether has invested its stablecoin profits in 140 projects and plans to expand its workforce to 450 people.

3. Eugene: Bitcoin may find support at $60,000; survival is paramount in a bear market; strict stop-loss orders are essential.

4. CoinShares: Digital asset investment products saw a net outflow of $187 million last week.

5. Binance confirms completion of the $300 million Bitcoin conversion for the SAFU fund, bringing its total holdings to 10,455 BTC.

6. Arthur Hayes has suffered cumulative losses of over $10.37 million in public on-chain transactions.

Macro & Regulatory

South Korea will launch a special investigation into cryptocurrency price manipulation and plans to introduce punitive fines for IT incidents.

The Financial Supervisory Service (FSS) of Korea today announced its 2026 business plan, outlining a series of enhanced regulatory measures for the virtual asset market. The FSS will conduct special investigations into high-risk areas that disrupt market order, focusing on combating typical manipulation tactics such as "whale"-style market manipulation, "net cage" methods, and "horse race" manipulation, as well as improper trading that uses API orders or social media to spread false information. Simultaneously, it will develop artificial intelligence analysis tools to perform second- and minute-level analysis of abnormally surging virtual asset prices, automatically identifying suspicious trading intervals and groups. To prevent financial IT incidents, the FSS will introduce a punitive fine system and strengthen the security responsibilities of CEOs and Chief Information Security Officers. Furthermore, a comprehensive monitoring system will be officially launched to collect and disseminate information on cyber threats in the financial sector.

Project Updates

Crypto.com founder announces ai.com is now live in beta.

Crypto.com founder Kris Marszalek announced on the X platform that ai.com is now in beta. Users who successfully reserve a username will have an AI assistant created for them. Each assistant is equipped with a fully functional "virtual computer," so it can not only chat but also perform various tasks, from simple tasks like managing emails and scheduling meetings to making phone calls to schedule appointments or cancel unwanted subscriptions. ai.com is the world's first easy-to-use and secure implementation of OpenClaw, an open-source intelligent agent framework that gained popularity two weeks ago. Previously, it was reported that Crypto.com founders acquired the AI.com domain for $70 million, making it the most expensive domain ever sold.

Tether has invested its stablecoin profits in 140 projects and plans to expand its workforce to 450 people.

According to Cointelegraph, citing the Financial Times, Tether has invested its stablecoin business profits in 140 deals spanning sectors from agriculture to sports, and plans to expand its workforce to 450 people.

Block, the Bitcoin payments company founded by Jack Dorsey, plans to lay off 10% of its staff.

According to Cointelegraph, Block, the Bitcoin payments company founded by Jack Dorsey, is undergoing a broader restructuring and has begun notifying hundreds of employees that their positions may be eliminated during annual performance reviews. The layoffs could reach approximately 10%. Block initiated a restructuring plan in 2024 aimed at improving efficiency and streamlining its product line. The company is working to more closely integrate its peer-to-peer payments platform, Cash App, with its merchant services division, Square. Block is reportedly scheduled to release its quarterly earnings report on February 26.

Binance will remove several spot trading pairs, including ARDR/BTC and BB/BNB.

According to an official announcement, based on recent review results, Binance will remove and cease trading the following spot trading pairs on February 10, 2026 at 16:00 (UTC+8):

ARDR/BTC, BB/BNB, BB/BTC, BERA/BTC, DIA/BTC, FLUX/BTC, GALA/FDUSD, GPS/BNB, GRT/FDUSD, GUN/FDUSD, ICP/ETH, ICX/BTC, KAITO/FDUSD, KERNEL/BNB, MANA/ETH, NOM/FDUSD, REQ/BTC, XNO/BTC, YGG/BTC and ZRO/BTC.

Story co-founders defended the token unlocking delay, stating that the project needed "more time."

Story Protocol co-founder SY Lee defended the project's decision to postpone the token unlock in an interview. The project has delayed the unlock of its first major IP token by six months to August 2026. Lee stated that the project needs "more time" to build use cases and pointed out that the current near-zero on-chain revenue is a "wrong metric."

He explained that Story's core business model lies in the offline licensing of AI training data, rather than on-chain transaction fees. The project is shifting from tokenized media content to "unscraped" human-contributed data and enterprise licensing agreements, which delays the visibility of on-chain revenue. Lee cited Worldcoin's precedent of extending the lock-up period in 2024, saying that this move signaled a long-term commitment, not a sign of distress.

Analysis & Opinions

Vitalik: Algorithmic stablecoins are the real DeFi

Ethereum co-founder Vitalik Buterin published an article on the X platform stating that USDC deposit yields do not constitute DeFi; algorithmic stablecoins are the true DeFi. He explained from a risk structure perspective: if high-quality algorithmic stablecoins backed by ETH exist, even if their liquidity largely comes from CDP holders, the key lies in transferring counterparty risk on the USD side to market makers. Even if algorithmic stablecoins are backed by RWA, achieving over-collateralization and asset diversification—ensuring sufficient collateral remains even if any asset fails—constitutes a substantial improvement to the risk structure for holders. Buterin believes the industry should move in this direction and gradually move away from the USD as the unit of account, towards a more universal and diversified index-based pricing system. The current practice of "depositing USDC into Aave for interest" does not fall into this category.

Arthur Hayes bets that HYPE's stock price will outperform all "shitcoins" with a market capitalization of over $1 billion in the next six months.

In response to Kyle Samani, former managing partner of Multicoin Capital, who stated that "multiple structural problems in the crypto industry are reflected in Hyperliquid," BitMEX co-founder Arthur Hayes commented: "Since you say $HYPE is no good, let's make a bet. I bet that from 00:00 UTC on February 10, 2026 to 00:00 UTC on July 31, 2026, HYPE will outperform any shitcoin (in USD) with a market capitalization exceeding $1 billion on CoinGecko. You choose your favorite coin. The loser must donate $100,000 to a charity designated by the winner."

Tom Lee: Bitcoin has recovered from multiple crashes, and the crypto market recovery has now begun.

According to The Bitcoin Historian, Tom Lee, chairman of Ethereum treasury Bitmine, stated on a CNBC live broadcast that the recovery of Bitcoin and the entire cryptocurrency market has begun. He said the crypto market has "survived six drops of more than 50%, but will recover as quickly as it fell." Market data shows that Bitcoin has rebounded to approximately $71,306, a 24-hour increase of 3.5%; Ethereum has rebounded to approximately $2,126, a 24-hour increase of 4.6%.

Strategy Bitcoin Strategy Manager: Never Stop Buying BTC

Chaitanya Jain, Bitcoin strategy manager at Strategy, posted on the X platform, "We will never stop buying Bitcoin." He previously stated that Strategy is not a trader, does not speculate, does not attempt to time the market, does not conduct technical analysis, does not draw lines on charts, and buys and holds for the long term.

Eugene: Bitcoin may find support at $60,000; survival is paramount in a bear market; strict stop-loss orders are essential.

Trader Eugene, reviewing last week's market performance, stated that from a high-timeframe (HTF) market structure perspective, significant issues remain. While $60,000 for Bitcoin can still be considered reasonable support, he emphasized the lesson learned from the previous cycle: never blindly go all-in on long positions without stop-loss protection. Eugene pointed out that bull markets often see more volatility than expected, while bear markets tend to see more dramatic declines. He acknowledged that the bottom of the bear market is currently unclear, as is whether Bitcoin has bottomed out at $60,000, but stressed that "survival is always the top priority." He advised traders to assess the risk of each trade individually and implement stop-loss strategies to protect against further downside.

The US forecasting market boom is heating up: regulatory arbitrage and marketing-driven growth, but long-term prospects remain uncertain.

According to Business Insider, analysis indicates that the boom in the US prediction market is built on a precarious foundation, primarily benefiting from regulatory arbitrage opportunities. For example, currently, most US states lack comprehensive regulations to oversee user participation in sports betting through prediction markets. Data shows that in 2025, sports-related transactions accounted for approximately 85% of Kalshi's trading volume, while Polymarket accounted for approximately 39%. Prediction markets position themselves as futures contract trading regulated by the Commodity Futures Trading Commission (CFTC), thereby offering sports betting in states that prohibit sports betting, such as California and Texas.

Bitcoin's Sharpe ratio has fallen to -10, approaching the lows of the 2018 and 2022 bear markets.

Bitcoin's Sharpe ratio has fallen to -10, approaching the lows of the 2018 and 2022 bear markets, indicating that its risk-reward profile is nearing an extreme. CryptoQuant analyst Darkfost points out that the Sharpe ratio has entered a range historically consistent with the final stages of bear markets. However, he emphasizes that this is not a sign that the bear market is over, but rather indicates that the risk-reward ratio is becoming extreme. The ratio is currently at its lowest level since March 2023.

The Sharpe ratio measures the degree to which Bitcoin's returns are relative to its risk. Analysts point out that, in reality, the risk of investing in Bitcoin remains high relative to recently observed returns, and the ratio is still deteriorating, indicating that Bitcoin's performance is not attractive compared to the risk it carries. However, a negative Sharpe ratio often foreshadows market turning points. Analysts say that such dynamics tend to appear near market turning points, and we are currently approaching a historically trend-reversal zone. But they also warn that this phase could last for months, and Bitcoin may continue to pull back before a true reversal.

The report estimates that Tether holds at least 148 tons of physical gold, placing it among the top 30 gold holders globally.

Investment bank Jefferies released a report stating that stablecoin issuer Tether's physical gold reserves had increased to approximately 148 tons as of the end of January, worth about $23 billion, placing it among the top 30 gold holders globally. The report noted that Tether purchased approximately 26 tons of gold in the fourth quarter of 2025 and added another 6 tons in January 2026. Its quarterly purchases exceed those of most single central banks, second only to Poland and Brazil. Currently, Tether's gold holdings surpass those of countries such as Australia, the UAE, and Qatar.

This gold is primarily used as reserve assets for its dollar stablecoin USDT and gold token XAUT. Jefferies analysis suggests that, as Tether is a private company, this figure is only a minimum estimate, and its actual gold holdings are likely much higher. According to its fourth-quarter audit report, USDT reserves will hold approximately $17 billion worth of gold as of the end of 2025.

mechanism

Binance has confirmed the completion of a $300 million Bitcoin conversion for the SAFU fund, bringing its total holdings to 10,455 BTC.

Binance confirmed on its X platform that it has completed the purchase of 4,225 Bitcoins, worth $300 million in stablecoins, for the SAFU Fund. The Binance SAFU Bitcoin address now holds 10,455 BTC. Binance will continue to increase its Bitcoin holdings for the SAFU Fund, aiming to complete the asset conversion within 30 days of the original announcement. Further updates will be shared with the community in a timely manner.

Michael Saylor has released another Bitcoin Tracker update; he may disclose his accumulating data next week.

Michael Saylor posted Bitcoin Tracker information again on the X platform. Based on previous experience, Strategy may disclose its increased holdings next week.

Important data

An anonymous individual transferred 2.565 bitcoins to Satoshi Nakamoto's genesis address last weekend.

According to Cointelegraph, an anonymous individual transferred 2.565 bitcoins (approximately $181,000) to Satoshi Nakamoto's genesis address over the weekend.

Billionaire Grant Cardone is listing one of his mansions for sale for 700 bitcoins.

According to Cointelegraph, billionaire Grant Cardone said he is listing his Gold Coast mansion for sale at 700 bitcoins, while his neighbor has listed a similar property for $88 million. He stated, "Let my neighbor make more fiat currency; four years from now, my choice will still be better."

Two newly created wallets withdrew 3,500 BTC and 30,000 ETH from Binance 5 hours ago.

According to Lookonchain monitoring, two newly created wallets withdrew 3,500 BTC and 30,000 ETH from Binance five hours ago, with a total value of over $300 million, suggesting that a whale may have begun accumulating BTC and ETH.

Data: Tokens such as CONX, AVAX, and APT will see significant unlocking next week, with CONX unlocking value estimated at approximately $15.6 million.

According to Token Unlocks data, tokens such as CONX, AVAX, and APT will see large-scale unlocks next week. Specifically: Connex (CONX) will unlock approximately 1.32 million tokens at 8:00 AM Beijing time on February 15th, representing about 1.56% of the circulating supply, worth approximately $15.6 million; Avalanche (AVAX) will unlock approximately 1.67 million tokens at 8:00 AM Beijing time on February 11th, representing about 0.32% of the circulating supply, worth approximately $15.2 million; Aptos (APT) will unlock approximately 11.31 million tokens at 8:00 PM Beijing time on February 10th, representing about 0.69% of the circulating supply, worth approximately $12.3 million; and Starknet (STRK) will unlock approximately 127 million tokens at 8:00 AM Beijing time on February 15th.

Arthur Hayes has accumulated losses of over $10.37 million in public on-chain transactions.

According to @0XTiger666's statistics, BitMEX co-founder Arthur Hayes's cumulative losses in public on-chain transactions exceeded $10.37 million as of February 2026. This data excludes undisclosed positions. His detailed transaction records are as follows:

• In February 2026, I liquidated my holdings of four tokens, including LDO and ENA, with an investment of $9.35 million and a loss of $3.48 million.
• In January 2026, the company invested $1.1 million in BIO, but incurred a loss of $640,000, representing a 58% decline.
• In December 2023, I traded LOOKS, ENS, and FXS, investing over $10.29 million and losing over $6.25 million, with each coin losing over 50%.

Bitcoin spot ETFs saw a net outflow of $318 million last week, marking the third consecutive week of net outflows.

According to SoSoValue data, Bitcoin spot ETFs saw a net outflow of $318 million last week (February 2 to February 6, Eastern Time).

The Bitcoin spot ETF with the largest net outflow last week was the Grayscale Bitcoin Trust (GBTC), with a weekly net outflow of $174 million. GBTC's historical total net outflow has reached $25.88 billion. This was followed by the Fidelity ETF (FBTC), with a weekly net outflow of $167 million. FBTC's historical total net inflow has reached $11.11 billion.

The Bitcoin spot ETF with the largest net inflow last week was the Bitwise ETF (BITB), with a weekly net inflow of $86.1656 million. BITB's total historical net inflow has now reached $2.14 billion.

As of press time, the total net asset value of Bitcoin spot ETFs was $89.43 billion, with an ETF net asset ratio (market capitalization as a percentage of Bitcoin's total market capitalization) of 6.39%, and a historical cumulative net inflow of $54.69 billion.

Ethereum spot ETFs saw net outflows of $166 million last week, marking the third consecutive week of net outflows.

According to SoSoValue data, Ethereum spot ETFs saw a net outflow of $166 million last week (February 2 to February 6, Eastern Time).

The Ethereum spot ETF with the largest net outflow last week was BlackRock ETF ETHA, with a weekly net outflow of $152 million. ETHA's historical total net inflow is currently $12.09 billion. The second largest was Fidelity ETF FETH, with a weekly net outflow of $59.89 million. FETH's historical total net inflow is currently $2.51 billion.

The Ethereum spot ETF with the largest net inflow last week was the Grayscale Ethereum Mini Trust (ETH), with a weekly net inflow of $32.97 million. The total historical net inflow of ETH has now reached $1.66 billion.

As of press time, the Ethereum spot ETF has a total net asset value of $11.97 billion, an ETF net asset ratio (market capitalization as a percentage of Ethereum's total market capitalization) of 4.83%, and a historical cumulative net inflow of $11.81 billion.

CoinShares: Digital asset investment products saw a net outflow of $187 million last week.

According to CoinShares' latest weekly report, outflows from digital asset investment products slowed significantly last week, totaling $187 million. While fund flows typically move in tandem with crypto asset price fluctuations, changes in the speed of outflows are historically more relevant, often indicating turning points in investor sentiment. Therefore, the recent slowdown in outflows may suggest that the market is nearing a temporary bottom.

The latest price adjustment brought total assets under management down to $129.8 billion, the lowest level since the announcement of the US tariff policy in March 2025, when asset prices were also at local lows. Trading activity was exceptionally high, with weekly trading volume on exchange-traded products reaching a record $63.1 billion, surpassing the previous high of $56.4 billion set last October. Bitcoin was the only asset class to see outflows last week, with $264 million flowing out. Ripple, Solana, and Ethereum led the inflows, with $63.1 million, $8.2 million, and $5.3 million respectively. XRP remains the best-performing asset this year, with cumulative inflows of $109 million.