Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 94

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 94
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 are traded on U.S. national
securities exchanges. The approved ETPs commenced trading directly to the public on January 11, 2024, with a trading volume of $4.6 billion
on the first trading day. On January 11, 2024, and in the subsequent days following the SEC’s approval of the listing and trading
of spot bitcoin ETPs. To the extent investors view our Class A ordinary shares as providing exposure to bitcoin, it is possible that the
value of our Class A ordinary shares may also have included a premium over the value of our bitcoin due to the prior scarcity of traditional
investment vehicles providing investment exposure to bitcoin, and that the value declined due to investors now having a greater range
of options to gain exposure to bitcoin and investors choosing to gain such exposure through ETPs rather than our Class A ordinary shares.
Additionally, on May 23, 2024, the SEC approved rule changes permitting the listing and trading of spot ETPs that invest in ether, the
main crypto asset supporting the Ethereum blockchain. The approved spot ETPs commenced trading directly to the public on July 23, 2024.
The listing and trading of spot ETPs for ether offers investors another alternative to gain exposure to digital assets, which could result
in a decline in the trading price of bitcoin as well as a decline in the value of our Class A ordinary shares relative to the value of
our bitcoin, as well as our series A perpetual strike preferred stock.

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Although we are an operating
company, and we believe we offer a different value proposition than a bitcoin investment vehicle such as a spot bitcoin ETP, investors
may nevertheless view our Class A ordinary shares as an alternative to an investment in an ETP, and choose to purchase shares of a spot
bitcoin ETP instead of our Class A ordinary shares. They may do so for a variety of reasons, including if they believe that ETPs offer
a “pure play” exposure to bitcoin that is generally not subject to federal income tax at the entity level as we are, or the
other risk factors applicable to an operating business, such as ours. Additionally, unlike spot bitcoin ETPs, we (i) do not seek for our
shares of Class A ordinary shares to track the value of the underlying bitcoin we hold before payment of expenses and liabilities, (ii)
do not benefit from various exemptions and relief under the Securities Exchange Act of 1934