Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 11

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 11
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 cannot assure you that the facilities hosting our miners will be able to deliver sufficient
power to meet the growing needs of our business on commercially reasonable terms. Currently, part of our power costs are covered in our
service framework agreement with Bitmain, which may demand for changes to terms of the service framework agreement, including an upward
adjustment to the electricity cost. In addition, we may incur additional electricity costs based on specific orders under such framework
arrangements, which may include periodic price adjustment mechanism with reference to local electricity price index. We may not be able
to pass on such increase in electricity costs to our customers. Failure by our counterparty to perform its obligation under the contract
terms may affect our ability to provide services to our customers and disrupt our business operations. Any significant increase
in the power costs could have a material adverse effect on our business, financial condition and results of operations.

Power outage may result in disruption of
our business.

Our business is vulnerable
to disruptions and power outages resulting from weather, animal incursions, accidents, equipment failures, curtailments, acts of war,
sabotage and other events. We rely on third-party hosting facility providers to host our miners, and cannot assure you that these
hosting facilities have backup power generators to maintain our operations in the event of a power outage. Disruption of our business
could impact our ability to generate and maintain the power levels necessary to provide cloud-mining services to customers and mine
digital assets for ourselves, which could have a material adverse effect on our business, financial condition and results of operations.

Delays in the expansion of existing facilities
or establishment of new facilities, or significant cost overruns could adversely affect our business.

The equipment used for digital
asset mining and transaction processing require the use of facilities with a highly specialized infrastructure and considerable and reliable
electric power. We expand our business operations by increasing our mining equipment, and expanding cooperation with providers of our
existing facilities to gain access to higher mining capacity. We cannot assure you that our hosting facility providers could obtain access
to such suitable land to expand hosting capacity, as such suppliers need to work closely with local governments to obtain necessary permits
and local power suppliers for power supplies. Delays in actions that require the assistance of such third parties, in receiving required
permits and approvals or in mediations with local communities, if any, may negatively impact such hosting facility providers’ construction
timelines and budget or result in any new facilities not being completed at all. We