Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 114

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 4
Chunk 114
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 established
unit of a digital asset. We compete with other industry participants on the basis of the total hash rate contributed by miners used for
our self-mining business, the degree of mining difficulty, the efficiency of our mining operations, the fiat value of the mining
reward, and obtain access to facilities for location of mining operations.

A significant percentage of
mining equipment is manufactured by a single supplier and almost all mining equipment is provided by a small number of manufacturers.
While miners of digital assets historically range from individual enthusiasts and entrepreneurs to large public company mining operations
and large company mining hosting operations with dedicated mining facilities, the vast majority of mining is now undertaken and further
trending towards large-scale, industrial mining farms. A mining pool is created when mining participants pool the processing power of
their miners over a network and mine transactions together. Rewards are then distributed proportionately to the pool participants based
on the work/hash power contributed to solving a block.

Several public companies (traded
in the United States, Canada, and internationally), such as the following, may be considered competitors to us:

  Marathon Digital Holdings, Inc.;  

  Riot Blockchain, Inc.;  

  CleanSpark, Inc.;  

  Hive                           

  Hut              

  Bitdeer              

  Bit Digital, Inc.; and  

  Bitfarms Technologies Ltd.  

The digital assets industry
is a highly competitive and evolving industry and new competitors and/or emerging technologies could enter the market and affect our competitiveness
in the future. Other market participants in the digital assets industry include investors and speculators, retail users transacting in
digital assets, and service companies that provide a variety of services including buying, selling, payment processing and storing of
digital assets. To continue to be successful, we will require sufficient additional capital to secure access to additional facilities,
new available mining equipment and related infrastructure.

Intellectual Property

Intellectual property is an
important aspect of our business, and we seek protection for our intellectual property as appropriate. To establish and protect our proprietary
rights, we rely upon a combination of patent, copyright, trade secret and trademark laws and contractual restrictions such as confidentiality
agreements, licenses and intellectual property assignment agreements.

As of the date of this annual
report, we have five registered patents and three patents applications in process in various jurisdictions, including the United States,
relating to technologies such as blockchain computing power supply, dispatching of blockchain hash calculations, mining capacity slicing
and allocation, and hash calculation pricing and adjustment. We maintain a policy