Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 107

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 4
Chunk 107
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 As of December 31, 2022,
we ceased to offer such temporary custodian services.

As of December 31, 2024, the
total value of Bitcoins and USDT recorded in our balance sheet was US$125.0 million and US$4.8 million, respectively. Bitcoin is
the only digital asset that accounted for more than 5.0% of our total digital assets as of December 31, 2024. If excluding the Bitcoins
that our customers pledged to us and including those we pledged to others, we held 1,721 Bitcoins as of December 31, 2024.

We keep Bitcoins mined by
our self-mining operations in offline cold wallet and hold the private key. Our management is responsible for overseeing the digital
assets and their transfers. Our internal policy requires each employee holding the required credentials to obtain corporate approval prior
to any transfer of our digital assets. The digital assets held for our own account are not insured or guaranteed by any government or
government agency. We also rely on service providers to safeguard our digital assets, and may experience difficulties in recovering our
digital assets when the associated private keys are lost or leaked. Any security incident resulting in a compromise of our digital assets
could result in substantial costs to us. Such incidents could also subject us to litigation, significant financial losses and damage our
reputation. See “ Item 3. Key Information - D. Risk Factors - Risks Related to Our Operations - We rely on third-party service
providers to safeguard and manage certain digital assets. Loss of private keys, security breach and hacking attempts could cause the loss
and theft of such digital assets, and materially and adversely impact our business, financial condition and results of operations.”

We are subject to risk associated
with depositing fund and digital assets with such third-party cryptocurrency exchanges and may experience loss of fund and digital
assets if such exchanges fail to manage our fund or digital assets appropriately and in compliance with applicable regulatory requirement.
For example, we have not been able to recover the fund and digital assets deposited with FTX at the time of its bankruptcy filing. As
a result, we recorded impairment loss on assets held by FTX of US$9.8 million in 2022 (remeasured using the carrying value of Bitcoin
as of December 31, 2022). Since the voluntary bankruptcy proceeds of FTX, we have suspended our transactions with FTX. See “ Item
3. Key Information - D. Risk Factors - Risks Related