Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 6

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 6
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emptions. In addition, many stablecoin issuers are unregulated and do not provide
transparent disclosure regarding their compliance with applicable licensing and regulatory requirements or the financial institutions
that hold the underlying stable assets. Some have also argued that stablecoins may be involved in money laundering. On February 17,
2021, the New York Attorney General entered an agreement with USDT’s operators, requiring them to cease any further trading activity
with New York persons and pay US$18.5 million in penalties for false and misleading statements made regarding the assets backing
USDT.

Volatility in stablecoins,
operational issues with stablecoins (for example, technical issues that prevent settlement), concerns about the sufficiency of any reserves
that support stablecoins, or regulatory concerns about stablecoin issuers or intermediaries, such as crypto asset spot markets, that support
stablecoins, could also affect, among others, the value, credentials, exchangeability and liquidity of stablecoins. If any of these events
affecting stablecoins we hold were to occur, the value of the affected stablecoins we hold could materially decline, and we may not be
able to timely convert digital assets into other viable forms, which could materially and adversely affect our results of operations,
financial condition and future prospects.

We may not be able to compete effectively
against our current and future competitors, which could have a material adverse effect on our business, financial condition and results
of operations.

The digital asset industry
is highly innovative, rapidly evolving and characterized by competition, experimentation, frequent introductions of new services and products
and uncertain and evolving industry and regulatory requirements. We expect competition to further intensify in the future as existing
and new competitors introduce new products or enhance existing services and products. We compete against numerous developers, owners and
operators in the blockchain industry worldwide. Some of our current and future competitors may have greater brand recognition, longer
operating histories, stronger marketing, technical and financial resources and access to greater and less expensive power than we do.
Our current and future competitors may vary in size, service offerings and geographic presence. In addition, many companies in the digital
asset industry are consolidating, which could further increase their market shares. If we are unable to compete successfully, or if solidifying
our competitive advantages requires us to incur significant costs, our business, financial condition and results of operations could be
adversely affected.

We compete with our competitors
in multiple aspects, including pricing, service quality and user experience, reputation, relationship