Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 102

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 4
Chunk 102
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on our platform. Customers shall also agree to decide the mining pool to which the hash calculation services purchased from us will be
provided. Once a mining pool is selected, a customer agrees that it has read and accepted the service agreement of the mining pool. To
the fullest extent permitted by law, we disclaim liabilities for any loss or damage arising out of, or in connection with, the use of
the services to be provided by the mining pool. We may unilaterally terminate the cloud-mining service agreement and cease to provide
our services if the use of such services violates the laws and regulations of the jurisdiction where a customer is located, or if the
customer fails to pay in full the service fees pursuant to this agreement. There was no minimum purchase amount commitment other than
the purchase amount stipulated in the order.

Miner hosting services

We began to provide hosting
services to customers of our cloud-mining services and other digital asset enthusiasts in July 2021. Our miner hosting services
provide customers with miner deployment, monitoring, troubleshooting, optimization and maintenance, as well as necessary electrical power,
repair and other infrastructure services necessary to operate, maintain and efficiently mine digital assets. Customers entrust us to deploy
the miners in data centers in the premises of our hosting facility suppliers. Our customers retain the right to use the miners, and will
pay us a set of service fees.

To provide miner hosting services
to our customers, we procure mining equipment hosting service, including data center rack space, electricity supply, network connectivity,
hardware maintenance and other necessary infrastructure services from various hosting facilities sourced by Bitmain and other suppliers.
We then integrate these services with our own services, such as performance monitoring and stability optimization, into a combined hosting
service, and sells the combined hosting service to our customers for service fees. We bear the risk of losses that may arise from the
difference between the actual costs incurred by us and the selling price to the customers. As of December 31, 2024, we provided hosting
services through three mining facilities in the United States (including Montana, Taxas and Arkansas), one of which was sourced through
hosting service cooperation arrangements with Bitmain, and the rest were through hosting cooperation arrangements between BitFuFu and
third parties directly. See “ - Suppliers - Hosting service cooperation arrangements under the Service Framework Agreement
with Bitmain.”

Electricity capacity and cost

Mining digital assets requires
intensive hash calculations, and the generation of such calculations requires large amounts of electricity. As