Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 82

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 82
---
Risks Related to Our Bitcoin Strategy and Holdings

A significant decrease in the market value of our bitcoin holdings could adversely affect our ability to satisfy our financial obligations.

As of December 31, 2024, our
outstanding indebtedness was $21,120,674, and our annual contractual interest expense was $2,293,230.00. As part of our bitcoin strategy,
we expect to incur or continue to incur additional indebtedness and other fixed charges. For the year ended December 31, 2024, our food
innovations business did not generate positive cash flow from operations. If our food innovations business does not generate cash flow
in future periods sufficient to satisfy our financial obligations, including our debt and cash dividend obligations, we intend to fund
our obligations using cash flow generated by equity or debt financings. Our ability to obtain equity or debt financing may in turn depend
on, among other factors, the value of our bitcoin holdings, investor sentiment and the general public perception of bitcoin, our strategy
and our value proposition. Accordingly, a significant decline in the market value of our bitcoin holdings or a negative shift in these
other factors may create liquidity and credit risks, as such a decline or such shifts may adversely impact our ability to secure sufficient
equity or debt financing to satisfy our financial obligations, including our debt and cash dividend obligations. These risks could materialize
at times when bitcoin is trading below its carrying value on our most recent balance sheet or our cost basis. As bitcoin constitutes the
vast bulk of assets on our balance sheet, if we are unable to secure equity or debt financing in a timely manner, on favorable terms,
or at all, we may be required to sell bitcoin to satisfy these obligations. Any such sale of bitcoin may have a material adverse effect
on our operating results and financial condition, and could impair our ability to secure additional equity or debt financing in the future.
Our inability to secure additional equity or debt financing in a timely manner, on favorable terms or at all, or to sell our bitcoin in
amounts and at prices sufficient to satisfy our financial obligations, including our debt service and cash dividend obligations, could
cause us to default under such obligations. Any default on our current or future indebtedness or preferred stock may have a material adverse
effect on our financial condition. See “Risks Related to Our Outstanding and Potential Future Indebtedness” and “Risks
Related to Our Series A Perpetual Strike Preferred Stock” for additional details about the