Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 94

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 4
Chunk 94
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 The next halving for Bitcoin will occur when the block numbers reach 1,050,000 and is currently expected
to occur in 2028. The reduction in reward for validating new blocks could depress our and our customers’ incentives to processing
transactions through Bitcoin, which could have a material adverse effect on our business, financial condition and results of operations.
See “ Item 3 Key Information - D. Risk Factors - Risk Related to our Industry - The “halving” of rewards
available on the Bitcoin network, or the reduction of rewards on other networks could have a negative impact on our ability to generate
revenue as there may not be adequate incentive to continue transaction processing and transaction processing operations may be ceased
altogether, which could have a material adverse effect on our business, financial condition and results of operations.” for more
details.

Competitive Strengths

We believe the following competitive
strengths contribute to our success and distinguish us from our competitors:

A global leader in Bitcoin mining service
and comprehensive mining service

Our digital asset mining services
are focused on the generation of digital assets, in particular Bitcoin, by solving cryptographic hash functions, also referred to as “providing
hash calculations,” on specific digital asset blockchains, a process commonly known as “mining.” Since our inception,
we have made available scalable, reliable and efficient services, including cloud-mining services, to customers worldwide. For our
cloud-mining services, we integrate mining capacities of mining equipment and other infrastructures from various suppliers to provide
hash calculation services, and repackages and integrates such hash calculation services with other critical services to create a one-stop cloud-mining services
for customers.

As of December 31, 2024, we
provided our solutions and services through mining facilities in five continents, which were optimized for large-scale mining operations
and sourced by Bitmain and other suppliers. As of the same date, we had access to approximately 551 MW in hosting capacity.

As of April 17, 2025, the
aggregate market capitalization of digital assets reached approximately US$2.75 trillion, among which 60.9%, or US$1.67 trillion,
could be attributable to Bitcoin, according toCoinGecko. com. We believe that we are one of the largest cloud-mining service
providers worldwide in terms of total hosting capacity and mining capacity in 2024. Leveraging our large business scale, strategic collaboration
with leading industry players and flexible business model, we believe we are well