Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 45

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 45
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. Since the updated version of the protocol is not backwards compatible, a hard fork can
cause the relevant blockchain to permanently diverge into two separate blockchains on a network. For example, in the case of Bitcoin,
a hard fork created two new digital assets: Bitcoin Cash and Bitcoin Gold. The value of a newly created digital asset from a hard fork
(“forked digital asset”) may or may not have value in the long-run and may affect the price of other digital assets if
interest and resources are shifted away from previously existing digital assets to the forked digital asset. The value of a previously
existing digital asset after a hard fork is subject to many factors, including the market reaction and value of the forked digital asset
and the occurrence of other soft or hard forks in the future. As such, the value of certain digital assets could be materially reduced
if existing and future hard forks have a negative effect on their value.

If a soft fork or hard fork
occurs on a network, which we or our customers are processing transactions or hold digital assets in, we may be required to upgrade our
hardware or software in order to continue our operations, and there can be no assurance that we will be able to make such upgrades. A
soft fork or hard fork in a particular digital asset that we deal with could have a negative effect on the value of that digital asset
and could have a material adverse effect on our business, financial condition and results of operations.

The supply of Bitcoins available for mining
is limited and we may not be able to quickly adapt to new businesses when all the Bitcoins have been mined.

The total Bitcoin supply is
designed to be approximately 21 million, and approximately 19.8 million Bitcoins had already been mined as of December 31, 2024,
according toCoinGecko. com. The number of blocks that can be solved in a year is designed to be fixed, and the number of Bitcoins
awarded for solving a block in the blockchain halves approximately every four years until the estimated complete depletion of Bitcoin
available for mining by around 2140. While the remaining Bitcoins are not designed to be entirely depleted in the near future, a decrease
in the reward for solving a block or in the transaction fees may result in a decrease in demand for the cloud-mining and miner hosting
services relating to Bitcoin, and the loss of Bitcoin’s dominant position among the digital assets, thereby reducing the demand
for our services and products to the extent they depend on the prospects