Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 8

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 8
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 with our suppliers such as Bitmain and the other key suppliers, our operations could
be disrupted, and our business, financial condition and results of operations would be adversely affected. We may not be unable to obtain
miners and hosting services from other suppliers at commercially reasonable term in a timely manner, or at all. Our ability to meet the
increasing demand of our services and products and grow our business is dependent, in large part, on the availability of advanced mining
equipment and hosting resources offered to us at commercially reasonable prices. The price and availability of such mining equipment fluctuate
with the price of Bitcoin or other digital assets. Higher digital asset prices tend to increase the demand for mining equipment and thus
increase the cost to acquire or lease such equipment.

In addition, as more companies
seek to enter the digital asset mining industry, the demand may outpace supply and create shortages, and we cannot assure you that such
key miner suppliers will be able to keep pace with any surge in the demand for mining equipment. These key suppliers may also prioritize
the order of our competitors, in which case we may experience difficulties in securing miner supply. Further, as these key suppliers typically
can determine the terms of supply agreements, we have limited bargaining power in negotiating the terms of supply agreements or may have
little or no recourse in the event a key miner supplier defaults on our delivery commitments. Defects, malfunctions, errors and breakdown
of these miners may occur from time to time, and we cannot assure you that we or our suppliers can take remedial measures in a timely
manner. Historically, an increase in interest and demand for digital assets has led to a shortage of hosting and transaction processing
hardware and increased prices on the market. We may experience difficulty in obtaining new mining equipment to satisfy the demand of our
customers, which may have a material adverse impact on the demand for our revenue. If we are not able to obtain a sufficient number of
miners at favorable prices, our growth expectations, liquidity, financial condition and results of operations will be materially and adversely
affected.

We also rely on Bitmain to
provide the miner hosting services under certain hosting service cooperation arrangements, through which Bitmain sources a limited number
of hosting facilities to host miners and provide services related to maintenance and technical support, electricity, network and security.
These hosting facilities may demand for upward adjustments of their service fees, including electricity cost, which we may not be able
to pass on to our customers. We cannot assure you that