Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 27

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 27
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 may face legal or administrative
proceedings or other unfavorable consequences that may result in liabilities and cause delays to our service delivery. Such proceedings
or disputes could have a material adverse effect on our business, financial condition, results of operations or cash flows.

The facilities from which we provide our
services may be located on property whose owner has not obtained the approval of relevant authorities, and we may be ordered to relocate
from that property.

The landlord of facilities
from which we provide our services may need to obtain approval from the relevant government authorities for the buildings or other sites.
If they fail to do so, such property may be considered to be in violation of relevant zoning laws and the government may order the demolition
or relocation. If we are evicted from such property, we may need to find alternative properties and relocate to such facilities. Unless
we are able to make timely alternative arrangements for relocating, we may not be able to provide the services a under our agreements
with customers and fulfill our contract obligations, which may have a material and adverse effect on our business, reputation, results
of operations and financial condition and incur liabilities.

Our prepayments and deposits to suppliers
may subject us to counterparty risk associated with such suppliers and negatively affect our liquidity and cash position.

We are generally required
to make prepayment for our hash rate supplies in advance and deposits for miner purchases ahead of delivery in order to secure the desired
capacity. As such, we are subject to counterparty risk exposure to our suppliers. Any failure by those suppliers to perform their contractual
obligations in a timely manner and/or in accordance with our requested standard, quality or quantity may result in us not being able to
fulfill customers’ demand accordingly. In such event, we may not be able to receive the refund of prepayments in a timely manner
or at all. Furthermore, such prepayments and deposits may put pressure on our operating cash flow conditions and if the cash outflows
for the prepayments and deposits significantly exceed the cash inflows during any period, our future liquidity and cash position will
also be adversely affected.

If we experience difficulty in collecting
our account receivables, our liquidity, financial condition and results of operations would be negatively impacted.

We derive our revenues primarily
from the sale of services and products to customers and are subject to customer counterparty risks such as our customer’s inability
to pay. We cannot assure you that we will be able to collect our account receivables on a timely basis, and our account