Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 4

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 4
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 Finance. In 2022 and 2023,
a number of companies in the digital asset industry have declared bankruptcy, including Core Scientific, Celsius, Voyager Digital, Three
Arrows Capital, BlockFi, FTX, and Genesis Holdco. Those bankruptcy proceedings contributed, at least in part, to further price decreases
in Bitcoin observed during those periods, and a loss of investor confidence in the digital asset industry, which in turn may materially
and adversely affect the demand of our cloud-mining services and mining equipment, as well as the profitability of our self-mining business.

Given the volatility of the
price of digital assets, we cannot assure you that the price of Bitcoin or other digital assets will remain high enough to sustain the
demand for our services and products or that their prices will not decline significantly in the future. Various factors, mostly beyond
our control, could impact the prices of digital assets, including:

  the limited use of digital assets as payment currencies, as compared with fiat currencies;  

  government and quasi-government regulation of digital assets and their use, or restrictions on or regulation of access to and operations of digital asset transactions;  

  changes in consumer demographics and market trends;  
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  the maintenance and development of open-source software protocols or similar digital asset systems;  

  the availability and popularity of other forms or payment methods, including new means of using fiat currencies;  

  general economic conditions and the regulatory environment relating to digital assets; and  

  negative consumer perception of digital assets, in particular Bitcoin.  

If the price of digital assets
or network transaction fees drop, the expected economic return of mining activities will diminish, resulting in a decrease in demand for
our services and products. We may need to adjust our pricing strategy to respond to changes in market demand. The future of digital assets
and their prices are subject to a high degree of uncertainty. If transaction fees become too high, users may be discouraged from using
digital assets, which will decrease the transaction volume of the digital asset network. In addition, any power shortage due to government
control measures or other reasons, or increase in energy costs, would raise the mining costs. These instances could affect our customers’
expected economic return for mining activities, which in turn, would adversely affect the demand for and pricing of our services and products.

Furthermore, fluctuations
in the price of digital assets may affect the value of our fixed assets or inventories, which primarily consist of Bitcoin miners, as
well