Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 16

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 16
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 are no longer
functional also needs to be replaced with new mining equipment.

The upgrading process requires
substantial investment, and we may face challenges in doing so on a timely and cost-effective basis based on availability of new
mining equipment and our access to adequate capital resources. If we are unable to obtain adequate numbers of new and replacement mining
equipment at scale, we may be unable to remain competitive in our highly competitive and evolving industry.

Moreover, we need additional
facilities to increase our capacity for more mining equipment. The costs of operating and maintaining facilities and growing our operations
may increase in the future, which may make it more difficult for us to expand our business and to operate the facilities while maintaining
or improving our profit margin.

We will need to raise additional
funds through equity or debt financings in order to meet our operating and capital needs. Additional debt or equity financing may not
be available when needed or, if available, may not be available on satisfactory terms. As of December 31, 2024, we had pledged 633 Bitcoins
as collateral for our loans or other financing arrangements. A significant and permanent drop in the value of digital assets, in particular
Bitcoin, may cause us to lose the ability to do so in the future. In addition, any future disruption in the digital asset industry may
destabilize the price of Bitcoin and affect investor confidence in the digital asset industry, which may materially and adversely impair
our ability to raise capital in the future. An inability to generate sufficient cash from operations or to obtain additional debt or equity
financing would adversely affect our results of operations. Additionally, if this happens, we and our customers may not be able to mine
digital assets as efficiently or in similar amounts as our competitors and, as a result, our business and financial condition and results
of operations could suffer.

Any failure to meet the necessary quality
standards of our services and products could adversely affect our reputation, business and results of operation.

The quality of our services
and products is critical to the success of our business and depends significantly on the effectiveness of our and our suppliers’
quality control. In our efforts to meet new market trends and adopt new technologies, we and our suppliers may not have adequate time
to go through rigorous quality control and assurance procedures, which could result in instances where our services and products cannot
reach the required performance standard. These instances could result in our customers suffering losses and harm to their experience and
continuous engagement with us. Defects may