Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 93

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 4
Chunk 93
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Voyager Digital, Three Arrows Capital, BlockFi, FTX, and Genesis Holdco. Those bankruptcy proceedings contributed, at least in part, to
cause price decreases in Bitcoin observed during those periods, a loss of confidence in the participants of the digital asset ecosystem
and negative publicity surrounding the digital asset industry. At the time of FTX’s bankruptcy filing, we deposited US$2.1 million
and 480 units of Bitcoins in account maintained at FTX. As of the date of this Report, aside from the impairment loss on
assets held by FTX in the amount of US$9.8 million recorded by us in 2022 in connection with the FTX bankruptcy proceeding,
we have not been materially impacted by those bankruptcies and the recent disruption in the digital asset industry. As of the
date of this Report, other than FTX, we have no material contractual relationship with any company in the digital asset industry that
has experienced bankruptcy. Additionally, the disruption in the digital asset industry has not materially affected our relationship with
suppliers or customers. While we have not been materially impacted by any liquidity or insolvency issues with such third parties to date,
there is no guarantee that our counterparties will not experience liquidity or insolvency issues in the future. We will continue to closely
monitor the development in digital asset industry, and will conduct diligence, including into liquidity or insolvency issues, on third-party service
providers in the digital asset industry with whom we have potential or ongoing relationships. However, we cannot provide any assurance
that we will not be materially impacted in the future by bankruptcies of market participants and recent disruption in the digital asset
industry. See “ Item 3. Key Information - D. Risk Factors - Risks Related to Our Industry.”

Under the current protocols
governing the Bitcoin network, the reward for validating a new block on that network is cut in half from time to time, which has been
referred to in our industry as “halving.” When the Bitcoin network was first launched, the reward for validating a new block
was 50 Bitcoin. In 2012, the reward for validating a new block was reduced to 25 Bitcoin. In July 2016, the reward for validating
a new block was reduced to 12.5 Bitcoin, and in May 2020, the reward was reduced to 6.25 Bitcoin. On April 20, 2024, the reward was
further reduced to 3.125 Bitcoin.