Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 93

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 93
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 traditional
investment vehicles providing investment exposure to bitcoin.

On January 10, 2024, the SEC approved the listing and trading of spot
bitcoin ETPs, the shares of which can be sold in public offerings and are traded on U.S. national securities exchanges. The approved ETPs
commenced trading directly to the public on January 11, 2024, with a trading volume of $4.6 billion on the first trading day. On January
11, 2024, and in the subsequent days following the SEC’s approval of the listing and trading of spot bitcoin ETPs. To the extent
investors view our Class A ordinary shares as providing exposure to bitcoin, it is possible that the value of our Class A ordinary shares
may also have included a premium over the value of our bitcoin due to the prior scarcity of traditional investment vehicles providing
investment exposure to bitcoin, and that the value declined due to investors now having a greater range of options to gain exposure to
bitcoin and investors choosing to gain such exposure through ETPs rather than our Class A ordinary shares. Additionally, on May 23, 2024,
the SEC approved rule changes permitting the listing and trading of spot ETPs that invest in ether, the main crypto asset supporting the
Ethereum blockchain. The approved spot ETPs commenced trading directly to the public on July 23, 2024. The listing and trading of spot
ETPs for ether offers investors another alternative to gain exposure to digital assets, which could result in a decline in the trading
price of bitcoin as well as a decline in the value of our Class A ordinary shares relative to the value of our bitcoin, as well as our
series A perpetual strike preferred stock.

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Although we are an operating company, and we believe we offer a different
value proposition than a bitcoin investment vehicle such as a spot bitcoin ETP, investors may nevertheless view our Class A ordinary shares
as an alternative to an investment in an ETP, and choose to purchase shares of a spot bitcoin ETP instead of our Class A ordinary shares.
They may do so for a variety of reasons, including if they believe that ETPs offer a “pure play” exposure to bitcoin that
is generally not subject to federal income tax at the entity level as we are, or the other risk factors applicable to an operating business,
such as ours. Additionally, unlike spot bitcoin ETPs, we (i) do not seek for