Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 36

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 36
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 risk of accidents and injuries during machine operation or maintenance.

Improper overhaul:
Overhauling machines improperly, such as by not replacing worn or damaged parts or not properly reassembling the machines, can lead to
equipment failure or decreased performance.

Aging machines: Machines
that are not regularly replaced or updated can become outdated or obsolete, increasing the risk of failure or decreased performance.

Environmental factors:
Exposure to environmental factors, such as extreme heat or cold, moisture, or corrosive substances, can damage our machines and lead to
failure or decreased performance.

Inadequate inspections:
Failure to perform regular inspections, such as non-destructive testing or visual inspections, can lead to failure or decreased performance.

Human error: Human
error during equipment storage, overhaul, operation, or maintenance, such as misreading instructions, using incorrect tools or materials,
or skipping steps in a procedure, can lead to failure or accidents.

The price of 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