Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 84

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 84
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 bitcoin. Additional bankruptcies,
closures, liquidations, regulatory enforcement actions or other events involving participants in the digital assets industry in the future
may further negatively impact the adoption rate, price, and use of bitcoin, limit the availability to us of financing collateralized by
bitcoin, or create or expose additional counterparty risks.Changes in the accounting treatment of our bitcoin holdings could have significant
accounting impacts, including increasing the volatility of our results. We have adopted ASU 2023-08 as of January 1, 2025, which requires
us to measure our bitcoin holdings at fair value in our statement of financial position, and to recognize gains and losses from changes
in the fair value of our bitcoin in net income each reporting period beginning January 1, 2025. ASU 2023-08 also requires us to provide
certain interim and annual disclosures with respect to our bitcoin holdings. The standard is now effective, and we have applied a cumulative-effect
net increase to the opening balance of retained earnings as of January 1, 2025 of $12.745 billion. Due in particular to the volatility
in the price of bitcoin, we expect the adoption of ASU 2023-08 to have a material impact on our financial results in future periods, increase
the volatility of our financial results, and affect the carrying value of our bitcoin on our balance sheet. As described in greater detail
under the risk factor heading “Risks Related to Our Business in General—Unrealized fair value gains on our bitcoin holdings
could cause us to become subject to the corporate alternative minimum tax under the Inflation Reduction Act of 2022,” ASU 2023-08
could also have adverse tax consequences. These impacts could in turn have a material adverse effect on our financial results and the
market price of our listed securities. Additionally, as a result of ASU 2023-08 requiring a cumulative-effect adjustment to our opening
balance of retained earnings as of January 1, 2025 and not permitting retrospective restatement of our historical financial statements,
our future results will not be comparable to results from periods prior to our adoption of the guidance. The broader digital assets industry,
including the technology associated with digital assets, the rate of adoption and development of, and use cases for, digital assets, market
perception of digital assets, and the legal, regulatory, and accounting treatment of digital assets are constantly developing and changing,
and there may be additional risks in the future that