Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066342
Chunk: 20

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 20
---
 align='center'>6</div>

Service providers. Service providers offer
a multitude of services to other participants in the Bitcoin industry, including custodial and trade execution services, commercial and
retail payment processing, loans secured by bitcoin collateral, and financial advisory services. If adoption of the Bitcoin network continues
to materially increase, we anticipate that service providers may expand the currently available range of services and that additional
parties will enter the service sector for the Bitcoin network.

As of the date of this prospectus, bitcoin was
the largest digital asset by market capitalization. However, numerous alternative digital assets exist, and many entities, including consortia
and financial institutions, are actively researching and investing resources in blockchain platforms and digital assets that utilize consensus
mechanisms other than proof-of-work mining, which is employed by the Bitcoin network. For example, in late 2022, the Ethereum network
transitioned to a “proof-of-stake” mechanism for validating transactions that requires significantly less computing power
than proof-of-work mining. Other alternative digital assets include “stablecoins,” which are designed to maintain a constant
price because of their issuers’ promise to hold high-quality liquid assets (such as U.S. dollar deposits and short-term U.S. treasury
securities) equal to the total value of stablecoins in circulation.

Additionally, central banks in some countries have
started to introduce digital forms of legal tender. For example, China’s central bank digital currency (“CBDC”) project
was made available to consumers in January 2022, and governments including the United States and the European Union have discussed the
potential creation of new CBDCs. For a discussion of risks relating to the emergence of other digital assets, see “Risk Factors
– Risks Related to Our Bitcoin Strategy and Holdings—The emergence or growth of other digital assets, including those with
significant private or public sector backing, could have a negative impact on the price of bitcoin and adversely affect our business.”

Our bitcoin strategy generally involves from time
to time, subject to market conditions, (i) issuing debt or equity securities or engaging in other capital raising transactions with the
objective of using the proceeds to purchase bitcoin and (ii) acquiring bitcoin with our liquid assets that exceed working capital requirements.
When we engage in such capital raising transactions, we compete for capital with, among others, ETPs, bitcoin miners, digital assets exchanges,
other digital assets service providers, other companies that hold bitcoin or other digital assets as treasury reserve assets, private