Company: XTKG
Filing Date: 2025-03-04
Form Type: F-3/A
Source: 0001213900-25-019896
Chunk: 21

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-03-04
Form: F-3/A
Chunk 21
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 bitcoin may be volatile.

A significant amount of the
value of bitcoin is speculative, which could lead to increased volatility. Investors could experience significant gains, losses and/or
volatility, depending on the valuation of bitcoin. The issuance of bitcoin is determined by a computer code, not by a central bank, and
prices can be extremely volatile. For instance, during the period from December 17, 2017 to December 14, 2018, bitcoin experienced a
decline of roughly 84%, and experienced a similar decline in value from November 2021 to June 2022. There is no assurance that bitcoin
will maintain its long-term value in terms of purchasing power in the future, or that acceptance of bitcoin payments by mainstream retail
merchants and commercial businesses will continue to grow. Any decline in the price of bitcoin could materially and adversely affect
our revenues and results of operations.

Cryptomining may adversely affect the environment.

Digital asset mining operations
can consume significant amounts of electricity, which may have a negative environmental impact and give rise to public opinion against
allowing, or government regulations restricting, the use of electricity for mining operations. Additionally, miners may be forced to
cease operations during an electricity shortage or power outage, or if electricity prices increase where the mining activities are performed.
This could adversely affect the price of bitcoin, or the operation of the bitcoin network, and by extension our revenues and results
of operations.

The actual or perceived use of bitcoin and other digital assets in illicit transactions may adversely affect the cryptocurrency industry.

Recent years have seen digital
assets used at times as part of criminal activities and to launder criminal proceeds, as means of payment for illicit activities, or
as an investment fraud currency. Although the number of cases involving cryptocurrencies for the financing of terrorism remains limited,
criminals have nonetheless become more sophisticated in their use of digital assets.

Although bitcoin transaction
details are logged on the blockchain, a buyer or seller of bitcoin may never know to whom the public key belongs or the true identity
of the party with whom it is transacting, as public key addresses are randomized sequences of alphanumeric characters that, standing
alone, do not provide sufficient information to identify users. Further, identifying users can be made even more difficult where a user
utilizes a tumbling or mixing services (e.g., Tornado Cash) to further obfuscate transaction details.

The cryptocurrency industry
and our revenues may be adversely affected to the extent that digital assets are increasingly used in connection with illicit transactions,
or