Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 105

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 105
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 cannot provide assurance that
our digital wallets, nor the digital wallets of our custodians held on our behalf, will not be compromised as a result of a cyberattack.
The bitcoin and blockchain ledger, as well as other digital assets and blockchain technologies, have been, and may in the future be, subject
to security breaches, cyberattacks, or other malicious activities.

Regulatory change reclassifying bitcoin as a security could lead to our classification as an “investment company” under the Investment Company Act of 1940 and could adversely affect the market price of bitcoin and the market price of our listed securities.

Our assets are concentrated in our bitcoin holdings.
While senior SEC officials have stated their view that bitcoin is not a “security” for purposes of the federal securities
laws, a contrary determination by the SEC could lead to our classification as an “investment company” under the Investment
Company Act of 1940, which would subject us to significant additional regulatory controls that could have a material adverse effect on
our ability to execute on our bitcoin strategy, and our business and operations and may also require us to substantially change the manner
in which we conduct our business.

In addition, if bitcoin is determined to constitute
a security for purposes of the federal securities laws, the additional regulatory restrictions imposed by such a determination could adversely
affect the market price of bitcoin and in turn adversely affect the market price of our listed securities.

We are not subject to legal and regulatory obligations that apply to investment companies such as mutual funds and exchange-traded funds, or to obligations applicable to investment advisers.

Mutual funds, ETFs and their directors and management
are subject to extensive regulation as “investment companies” and “investment advisers” under U.S. federal and
state law; this regulation is intended for the benefit and protection of investors. We are not subject to, and do not otherwise voluntarily
comply with, these laws and regulations. This means, among other things, that the execution of or changes to our Treasury Reserve Policy
or our bitcoin strategy, our use of leverage, the manner in which our bitcoin is custodied, our ability to engage in transactions with
affiliated parties and our operating and investment activities generally are not subject to the extensive legal and regulatory requirements
and prohibitions that apply to investment companies and investment advisers. For example, although a significant change to our Treasury
Reserve Policy would require the approval of our board of directors, no shareholder or regulatory approval would be necessary. Consequently,
our board of directors has broad discretion over