Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 12

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 12
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 cannot assure you that we will not experience quality
issues in any expansion or upgrades of those facilities. All of these risks could cause us to be unable to run our mining operations in
a way that is technologically advanced, economical and energy efficient and temperature controlled, which will adversely affect our business,
financial condition and results of operations. If we experience significant delays in the supply of power and facility spaces required
to support our expansion, our ability to deliver services and expand operations will be materially and adversely affected.

The average selling prices of our services
and products may fluctuate from time to time, which may in turn adversely affect our profitability.

The digital asset industry
is characterized by rapid launches of new services and products, continuous technological advancements and changing market trends and
customer preferences, all of which may cause fluctuations in the average selling prices of our services and products over time. We may
have to significantly lower the average selling prices of our services and products to retain customers. However, such significant decreases
in average selling prices may not be offset by a corresponding decrease in the prices of the equipment and properties, and our profitability
may be materially and adversely affected.

Increases in hosting costs, power costs
other important cost items may cause us to mine digital assets less cost-efficiently, which may reduce our operating and profit margins,
and adversely affect our business, financial condition and results of operations.

We incurred cost of revenue
of US$162.0 million, US$271.4 million and US$433.6 million in 2022, 2023 and 2024, respectively, and realized a gross profit
margin of 18.3%, 4.5% and 6.4% in the same periods, respectively. We achieved a net profit of US$2.4 million, US$10.5 million
and US$54.0 million in 2022, 2023 and 2024, respectively. We expect our cost of revenue to continue representing a substantial portion
of our total revenue. If we do not manage those costs effectively, our operating and profit margins may be reduced, and our business,
financial condition and results of operations may be adversely affected.

We face risks associated with the expansion
of our operations globally, and if we are unable to effectively manage these risks, they could impair our ability to expand our business
abroad.

As we continue to grow our
business and expand our operations globally, we will continue to sell our services and products into new jurisdictions in which we