Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 7

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 7
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 with suppliers, power resources,
ability to obtain replacement for miners or hosting facilities, technical and software expertise, and financial resources. Some of our
competitors may be able to:

  develop superior products or services, gain greater market acceptance and expand their service offerings more efficiently or rapidly;  

  adapt to new or emerging technologies and changes in customer requirements more quickly;  
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  obtain more favorable terms from the suppliers and procure mining equipment, electricity and other supplies in a more cost-efficient manner;  

  identify and acquire desirable properties that we are interested in from developers;  

  offer services at prices below current market rates or below the prices we currently charge our customers;  

  take advantage of acquisition and other opportunities more readily; and  

  adopt more aggressive pricing policies and devote greater resources to the promotion, marketing and sales of their services.  

In addition, we may face pricing
pressure with respect to our services and products. Prices for our services are affected by a variety of factors, including supply and
demand conditions and pricing pressures from our competitors. We may be required to lower our prices to remain competitive, which may
decrease our profit margins and could have a material adverse effect on our business, financial condition and results of operations.

We rely on a limited number of suppliers
to provide us with digital asset mining equipment, hosting facilities, and other products or services critical to our business operations.
We may not be able to obtain such supplies at competitive prices during times of high demand, which could have a material adverse effect
on our business, financial condition and results of operations.

We rely on a limited number
of suppliers to provide us with products and services, including but not limited to miners, hash rates and hosting facilities, at economical
prices. For the years ended December 31, 2022, 2023 and 2024, our purchases from top three suppliers accounted for 84%, 83%, and 81% of
our total cost of revenue in the same periods, respectively. Particularly, we purchased and leased miners from and gained access to hosting
facilities in a number of regions and countries through collaborations with Bitmain, our largest supplier in 2024. In 2022, 2023 and 2024,
costs attributed to agreements with Bitmain, as a percentage of our total cost of revenue, was approximately 52%, 61% and 41%, respectively.
If we are unable to maintain business relationship