Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 92

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 92
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-08, we
may incur greater losses during periods when we previously would have incurred smaller losses or no losses because we had already impaired
the carrying value of our bitcoin to a low price observed during a prior period, and we may also incur gains during periods when the market
value of bitcoin rises, as compared to periods prior to January 1, 2025, when we would not have incurred any gains under similar circumstances.
Accordingly, due in particular to the volatility in the price of bitcoin, we expect the adoption of ASU 2023-08 to increase the volatility
of our financial results. Additionally, as a result of ASU 2023-08 requiring a cumulative-effect adjustment to our opening balance of
retained earnings as of January 1, 2025 and not permitting retrospective restatement of prior periods, our future results will not be
comparable to results from periods prior to our adoption of the guidance.

Because we intend to purchase additional bitcoin
in future periods and increase our overall holdings of bitcoin, we expect that the proportion of our total assets represented by our bitcoin
holdings will increase in the future. As a result, and in particular due to our adoption of ASU 2023-08, volatility in our earnings may
be significantly more than what we experienced in prior periods.

The availability of spot ETPs for bitcoin and other digital assets may adversely affect the market price of our listed securities.

Although bitcoin and other digital assets have
experienced a surge of investor attention since bitcoin was invented in 2008, until recently investors in the United States had limited
means to gain direct exposure to bitcoin through traditional investment channels, and instead generally were only able to hold bitcoin
through “hosted” wallets provided by digital asset service providers or through “unhosted” wallets that expose
the investor to risks associated with loss or hacking of their private keys. Given the relative novelty of digital assets, general lack
of familiarity with the processes needed to hold bitcoin directly, as well as the potential reluctance of financial planners and advisers
to recommend direct bitcoin holdings to their retail customers because of the manner in which such holdings are custodied, some investors
have sought exposure to bitcoin through investment vehicles that hold bitcoin and issue shares representing fractional undivided interests
in their underlying bitcoin holdings. These vehicles, which were previously offered only to “accredited investors” on a private
placement basis, have in the past traded at substantial premiums to net asset value, possibly due to the relative scarcity of