Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 95

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 95
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 2025 and not permitting retrospective restatement of prior periods, our future results will not be
comparable to results from periods prior to our adoption of the guidance.

Because we intend to purchase additional bitcoin
in future periods and increase our overall holdings of bitcoin, we expect that the proportion of our total assets represented by our bitcoin
holdings will increase in the future. As a result, and in particular due to our adoption of ASU 2023-08, volatility in our earnings may
be significantly more than what we experienced in prior periods.

The availability of spot ETPs for bitcoin and other digital assets may adversely affect the market price of our listed securities.

Although bitcoin and other digital assets have
experienced a surge of investor attention since bitcoin was invented in 2008, until recently investors in the United States had limited
means to gain direct exposure to bitcoin through traditional investment channels, and instead generally were only able to hold bitcoin
through “hosted” wallets provided by digital asset service providers or through “unhosted” wallets that expose
the investor to risks associated with loss or hacking of their private keys. Given the relative novelty of digital assets, general lack
of familiarity with the processes needed to hold bitcoin directly, as well as the potential reluctance of financial planners and advisers
to recommend direct bitcoin holdings to their retail customers because of the manner in which such holdings are custodied, some investors
have sought exposure to bitcoin through investment vehicles that hold bitcoin and issue shares representing fractional undivided interests
in their underlying bitcoin holdings. These vehicles, which were previously offered only to “accredited investors” on a private
placement basis, have in the past traded at substantial premiums to net asset value, possibly due to the relative scarcity of traditional
investment vehicles providing investment exposure to bitcoin.

On January 10, 2024, the SEC
approved the listing and trading of spot bitcoin ETPs, the shares of which can be sold in public offerings and are traded on U.S. national
securities exchanges. The approved ETPs commenced trading directly to the public on January 11, 2024, with a trading volume of $4.6 billion
on the first trading day. On January 11, 2024, and in the subsequent days following the SEC’s approval of the listing and trading
of spot bitcoin ETPs. To the extent investors view our Class A ordinary shares as providing exposure to bitcoin, it is possible that the
value of our Class A ordinary shares may also