Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 83

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 83
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 conditions. We are continually examining the risks and rewards of our strategy to acquire
and hold bitcoin. This strategy has not been tested over an extended period of time or under different market conditions. For example,
although we believe bitcoin, due to its limited supply, has the potential to serve as a hedge against inflation in the long term, the
short-term price of bitcoin declined in recent periods during which the inflation rate increased. If bitcoin prices were to decrease or
our bitcoin strategy otherwise proves unsuccessful, our financial condition, results of operations, and the market price of our listed
securities would be materially adversely impacted.

We are subject to counterparty risks, including
in particular risks relating to our custodians. Although we have implemented various measures that are designed to mitigate our counterparty
risks, including by storing substantially all of the bitcoin we own in custody accounts at U.S.-based, institutional-grade custodians
and negotiating contractual arrangements intended to establish that our property interest in custodially-held bitcoin is not subject to
claims of our custodians’ creditors, applicable insolvency law is not fully developed with respect to the holding of digital assets
in custodial accounts. If our custodially-held bitcoin were nevertheless considered to be the property of our custodians’ estates
in the event that any such custodians were to enter bankruptcy, receivership or similar insolvency proceedings, we could be treated as
a general unsecured creditor of such custodians, inhibiting our ability to exercise ownership rights with respect to such bitcoin, or
delaying or hindering our access to our bitcoin holdings, and this may ultimately result in the loss of the value related to some or all
of such bitcoin, which could have a material adverse effect on our financial condition as well as the market price of our listed securities.

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The broader digital assets industry is subject
to counterparty risks, which could adversely impact the adoption rate, price, and use of bitcoin. A series of recent high-profile bankruptcies,
closures, liquidations, regulatory enforcement actions and other events relating to companies operating in the digital asset industry
have highlighted the counterparty risks applicable to owning and transacting in digital assets. Although these bankruptcies, closures,
liquidations and other events have not resulted in any loss or misappropriation of our bitcoin, nor have such events adversely impacted
our access to our bitcoin, they have, in the short-term, likely negatively impacted the adoption rate and use of