Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 42

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 42
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 the processing power on the Bitcoin or other network, which may adversely affect our business, results of operations
and prospects.

If a malicious actor or botnet
(a volunteer or hacked collection of computers controlled by networked software coordinating the actions of the computers) obtains a majority
of the processing power dedicated to mining on the Bitcoin or other network, it may be able to alter the blockchain on which the Bitcoin
or other network and most Bitcoin or other digital asset transactions rely by constructing fraudulent blocks or preventing certain transactions
from completing in a timely manner, or at all. The malicious actor or botnet could control, exclude, or modify the ordering of transactions,
though it could not generate new Bitcoin or digital assets or transactions using such control. The malicious actor could “double-spend”
its own Bitcoin or digital assets (i. e., spend the same Bitcoin or digital assets in more than one transaction) and prevent the confirmation
of others’ transactions for so long as it maintained control. To the extent that such malicious actor or botnet did not yield our
control of the processing power on the Bitcoin or other network, or the Bitcoin or other community did not reject the fraudulent blocks
as malicious, reversing any changes made to the blockchain may not be possible.

Although there are no known
reports of malicious activity or control of the Bitcoin blockchain achieved through controlling over 50% of the processing power on the
network, it is believed that certain mining pools may have exceeded the 50% threshold. The possible crossing of the 50% threshold indicates
a greater risk in that a single mining pool could exert authority over the validation of Bitcoin transactions. To the extent that the
Bitcoin or other digital asset ecosystems, including developers and administrators of mining pools, do not act to ensure greater decentralization
of Bitcoin or other digital asset mining processing power, the feasibility of a malicious actor obtaining control of the processing power
on the Bitcoin or other network will increase, which may adversely affect our business, results of operations and prospects.

Digital assets, including Bitcoin, face
significant scaling obstacles that can lead to high fees or slow transaction settlement times and any mechanisms of increasing the scale
of digital asset settlement may significantly alter the competitive dynamics in the market.

Digital assets face significant
scaling obstacles that can lead to high fees or slow transaction settlement times, and attempts to increase the volume of transactions
may not be effective. Scaling digital assets, and particularly Bitcoin, is essential to the widespread acceptance of digital assets as
a means of payment, which is necessary to the