Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 130

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 5
Chunk 130
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 promotional activities; (ii) salaries and share-based compensations to our sales and marketing staff
and other personnel performing related functions; and (iii) advertising and promotion fees to reach more customers.

General and administrative expenses

Our general and
administrative expenses were US$2.7 million, US$3.7 million and US$25.3 million in 2022, 2023 and 2024, respectively, primarily
representing (i) salaries and share-based compensations to our administrative staff and management team, and other personnel
performing related functions; and (ii) professional service expenses such as audit fees, consulting fees and legal fees.

Research and development expenses

Our research and development
expenses were US$1.6 million, US$1.7 million and US$5.6 million in 2022, 2023 and 2024, respectively, primarily representing salaries
and share-based compensations paid to our research and development staff and other personnel performing related functions.

Realized fair value gain on digital asset borrowings

We entered into digital asset
borrowing agreements with a third party to borrow 300 Bitcoins in total at an annual interest rate of 1% in February and March 2022, which
were primarily used to supplement our working capital. The borrowings were due in June 2022. We fully repaid the Bitcoins in June 2022,
and recognized a fair value gain on digital asset borrowings of US$4.2 million in 2022 due to the changes in the Bitcoin spot price
between the day of receiving and day of repaying the Bitcoins borrowed. We did not record realized fair value gain or loss on digital
asset borrowings in 2023 and 2024.

Credit loss provision for receivables

Our accounts receivables balance consists of
amounts due from its customers of cloud-mining business, mining equipment sales, and self-mining operations. We make provision for potentially
uncollectable accounts under the current expected credit loss (“ ECL”) impairment model. The ECL impairment model requires
an estimate of expected credit losses, measured over the contractual life of an instrument, that considers forecasts of future economic
conditions in addition to information about past events and current conditions, such as the age of the balance, collection history, and
current economic trends.

Gain on sale of recovery rights / impairment
loss on assets held by FTX

In November 2022, it was reported
that the FTX cryptocurrency exchange