Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 102

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 102
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 insurance coverage we maintain related to our bitcoin.

Bitcoin is controllable only by the possessor of
both the unique public key and private key(s) relating to the local or online digital wallet in which the bitcoin is held. While the Bitcoin
blockchain ledger requires a public key relating to a digital wallet to be published when used in a transaction, private keys must be
safeguarded and kept private in order to prevent a third party from accessing the bitcoin held in such wallet. To the extent the private
key(s) for a digital wallet are lost, destroyed, or otherwise compromised and no backup of the private key(s) is accessible, neither we
nor our custodians will be able to access the bitcoin held in the related digital wallet. Furthermore, we cannot provide assurance that
our digital wallets, nor the digital wallets of our custodians held on our behalf, will not be compromised as a result of a cyberattack.
The bitcoin and blockchain ledger, as well as other digital assets and blockchain technologies, have been, and may in the future be, subject
to security breaches, cyberattacks, or other malicious activities.

Regulatory change reclassifying bitcoin as a security could lead to our classification as an “investment company” under the Investment Company Act of 1940 and could adversely affect the market price of bitcoin and the market price of our listed securities.

Our assets are concentrated in our bitcoin holdings.
While senior SEC officials have stated their view that bitcoin is not a “security” for purposes of the federal securities
laws, a contrary determination by the SEC could lead to our classification as an “investment company” under the Investment
Company Act of 1940, which would subject us to significant additional regulatory controls that could have a material adverse effect on
our ability to execute on our bitcoin strategy, and our business and operations and may also require us to substantially change the manner
in which we conduct our business.

In addition, if bitcoin is determined to constitute
a security for purposes of the federal securities laws, the additional regulatory restrictions imposed by such a determination could adversely
affect the market price of bitcoin and in turn adversely affect the market price of our listed securities.

We are not subject to legal and regulatory obligations that apply to investment companies such as mutual funds and exchange-traded funds, or to obligations applicable to investment advisers.

Mutual funds, ETFs and their directors and management
are subject to extensive regulation as “investment companies” and “investment advisers” under U.S. federal and
state law;