Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 124

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 5
Chunk 124
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 sourcing of the mining
equipment, the sales and lease income of the mining equipment and sourcing commission. As such, our results of operations and financial
condition are substantially affected by fluctuations and long-term trends in the value of Bitcoin and, to a lesser extent, other
digital assets. The prices of digital assets, specifically Bitcoin, have experienced substantial volatility, with the high or low prices
having little or no relationship to identifiable market forces. The value of digital assets is also subject to rapidly changing investor
sentiment, and may be influenced by factors such as technology, regulatory void or changes, fraudulent actors, manipulation, and media
reporting. Digital assets, in particular Bitcoin, may have value based on various factors, including their acceptance as a means of exchange
by consumers and others, scarcity, and market demand. The bankruptcy proceedings in the digital asset industry have contributed in 2022
and 2023, at least in part, to cause price decreases in Bitcoin observed during those periods. For example, the price of Bitcoin varies
between approximately US$16,000 to approximately US$46,000 in 2022, between approximately US$17,000 to approximately US$44,000 in 2023,
approximately US$42,000 to approximately US$106,000 in 2024 and approximately US$81,600 as of March 31, 2025. A significant and prolonged
drop in Bitcoin price may reduce the demand for our cloud-mining services and adversely affect our profitability, and vice versa.

The fluctuations and longer-term trends
in the value of Bitcoin and other digital assets also affect the price of miners that we purchase or lease from our suppliers, and the
price of hash rate we purchased. A decrease in Bitcoin price is expected to allow us to expand our miner fleets and mining capacity at
reasonable price, which may help us compensate potential operating loss associated with a drop in Bitcoin price. However, such hedging
practice may not generate expected return. To the extent that we decide to monetize our digital asset holdings, our earning from the sale
of digital assets is expected to be affected by the then prevailing market price of and demand for the relevant digital assets. A significant
drop in the price of digital assets may also subject us to impairment loss for digital assets held for our own account. For example, we
recorded impairment loss on digital assets of US$12.9 million, US$7.0 million and nil in 2022, 2023 and 202