Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 14

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 14
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and cost recovery model, and the market demand. Our ability to set favorable prices at our desired margins and accurately estimate costs,
among other factors, has a significant impact on our profitability. We may be unable to maintain our bargaining power, and our profit
margin may be driven down by market conditions or other factors. If we see higher pricing pressure due to intensified competition from
other competitors, decrease in prices to our customers in the end market or any other reasons, or if we otherwise lose bargaining power
due to weaker demand for our services and products, we may need to reduce our prices and lower our profit margins. Moreover, we may not
be able to accurately estimate our costs or pass on all or part of any increase in our costs of miner and hosting facilities, to our customers.
As a result, our results of operations and financial condition could be materially and adversely affected.

Our future success depends on our ability
to keep pace with rapid technological changes that could make our current or future technologies less competitive or obsolete.

Rapid, significant and disruptive
technological changes continue to impact the digital asset industry. Services and products offered by us may become less marketable due
to demand for new processes and technologies, including, without limitation: (i) customer demand for miners with higher hash rate
or for new types of digital assets; (ii) new processes to deliver power to, or eliminate heat from, miners; (iii) customer demand
for additional cloud-mining or hosting capacity; (iv) new technology that permits higher levels of critical load and heat removal
than the facilities are currently designed to provide; (v) limited power supply to support new, updated or upgraded technology; and
(vi) a shift to more power-efficient transaction validation protocols. In addition, the systems that connect miners managed
by us to the internet and other external networks may become insufficient, including with respect to latency, reliability and diversity
of connectivity. We may not be able to adapt to changing technologies, identify and implement new alternatives successfully or meet customer
demands for new processes or technologies in a timely and cost-effective manner, if at all, which would have a material adverse effect
on our business, financial condition and results of operations.

Even if we succeed in adapting
to new processes and technologies, there is no assurance that our use of such new processes or technology would have a positive impact
on our financial performance. For example, we could incur substantial additional costs if we need to materially improve the miner fleet
engaged through the implementation