Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 46

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 46
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 of Bitcoins. We may not be able to quickly adapt to new businesses
or expand to other digital assets when all the Bitcoins have been discovered or Bitcoin is replaced by other digital assets as the mainstream
digital asset, which will result in a significant negative impact on our business, financial condition and results of operations.

Risks Related to the Regulatory Framework

Regulatory changes or actions may restrict
the use of digital assets or the operation of digital asset networks in a manner that may require us to cease certain or all operations,
which could have a material adverse effect on our business, financial condition and results of operations.

In recent years, there has
been a significant amount of regulatory attention directed toward digital assets, digital asset networks and other industry participants
by United States federal and state governments, foreign governments and self-regulatory agencies. For example, as digital assets
such as Bitcoin have grown in popularity and in market size, the Federal Reserve Board, U. S. Congress and certain U. S. agencies including
Financial Crimes Enforcement Network (“ FinCEN”), the SEC, U. S. Commodity Futures Trading Commission (the “ CFTC”)
and the Federal Bureau of Investigation have begun to examine the operations of the Bitcoin network, Bitcoin users and Bitcoin exchange
markets. In addition, local state regulators have initiated actions against, and investigations of, individuals and companies involved
in digital assets.

Additionally, the bankruptcy
filings of FTX and other digital asset companies in recent years have attracted heightened regulatory scrutiny from U. S. regulatory agencies
such as the SEC and CFTC. Increasing regulation may result in additional compliance costs and require us and our management to devote
increased time and attention to regulatory matters or change aspects of our business. Increasingly strict legal and regulatory requirements
and any regulatory investigation and enforcement action may result in changes to our business and relationship with customers and service
providers, as well as increased costs. For example, the State of New York passed a two-year moratorium that restricts issuance of
new permits for proof-of-work mining operations that are powered by an electric generating facility utilizing carbon-based fuel,
and the province of Manitoba in Canada has enacted an 18-month moratorium on new crypto mining operations. Before termination of
the hosting agreement in November 2024, we utilized the hosting services from hosting facilities located in New York, which were powered
by hydro power. Furthermore, although we do not currently collaborate with mining facilities in Canada, similar legislation may be adopted
by other states and non-U