Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 113

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 4
Chunk 113
---
2023 and 2024, the aggregate cost attributable to the abovementioned
agreements with Bitmain was approximately US$83.9 million, US$166.5 million and US$177.2 million, respectively. In 2022, 2023
and 2024, such costs attributable to the abovementioned agreements with Bitmain, as a percentage of the total cost of our revenue, was
approximately 52%, 61% and 41%, respectively. See “ Item 7. Major Shareholders and Related Party Transactions - B. Related Party
Transactions - Transactions with Bitmain and its affiliates.” As of December 31, 2024, the majority of hosting facilities utilized
by us were sourced by Bitmain. In 2022, 2023 and 2024, hosting cost (including electricity cost) attributed to Bitmain accounted for 95%,
84% and 52% of all hosting cost, respectively. We procured miners from Burdy during 2022 and has begun to develop other hosting facility
suppliers since 2023. However, we currently rely on Bitmain to source most of our hosting facilities. See “ Item 3. Key Information - D.
Risk Factors - Risks Related to Our Business - We rely on a limited number of suppliers to provide us with digital asset mining
equipment, hosting facilities, and other products or services critical to our business operations. We may not be able to obtain such supplies
at competitive prices during times of high demand, which could have a material adverse effect on our business, financial condition and
results of operations.”

Competition

The digital asset industry
in which we operate is competitive, with an increasing number of participants in and new technologies introduced to the digital asset
industry.

Our cloud-mining operations
compete with other mining service providers that allow users to subscribe a fraction of larger digital asset mining capacities for a fee
and enjoy the proportionate mining rewards, also known as hash calculation sharing services. We compete with other industry participants
primarily on the service product design, pricing, anticipated return, quality and availability of cloud-mining services, and the
stability and sufficiency of various supplies and resources supporting the provision the cloud-mining services.

For our hosting services,
we compete with other industry participants primarily on hosting space and power supply and cost.

Our self-mining operations
compete with mining operations throughout the world to complete new blocks in the blockchain and earn the reward in the form of an