Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 103

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 4
Chunk 103
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 of December 31, 2024, we
had access to approximately 551 MW in electricity capacity at mining facilities in the five continents through Bitmain and other suppliers.
Electricity cost is charged by hosting operators for actual power consumption incurred for operating miners, which is then paid by us
to hosting facility suppliers, including Bitmain, as part of hosting fees. In order to minimize the impact of electricity price increases
on the costs, we have been leasing or acquiring more advanced miner series, such as S19XP series and S21 series, from suppliers since
November 2022.

Suppliers

Digital asset mining is dependent
on specialized digital asset mining hardware, most predominantly utilizing ASIC chips. Almost all of these miners are produced outside
of the United States, mostly in Asia. Currently, the largest of miner manufacturer is Bitmain with its industry leading Antminer
S21 series. We typically entered into supply agreements for most of the miners we operated or acquired for our mining operations, with
certain suppliers, including Bitmain, which also provided us with relevant maintenance and repair services. With respect to our cloud-mining services,
we may need to make a significant amount of prepayments for the miners we lease, and for our miner purchases, we are typically required
to pay deposits to our miner suppliers in advance of delivery. If the market value of digital assets has increased, the demand for the
newest, most efficient miners will also increase, leading to scarcity in the supply, and thereby a resulting increase in the price of
hash calculations and miner supplies. Our business is highly dependent upon suppliers providing an adequate supply of efficient digital
asset mining resources at economical prices to enable profitable mining by us and by third-party customers intending to purchase
our solutions.

Antminer purchase arrangements

In the ordinary course of
our business, we entered into a number of purchase agreements for digital asset miners of Antminer S19 and S21 series with certain suppliers,
including Bitmain. Such purchase agreements do not contain exclusivity clauses that prohibit either party thereto from selling or purchasing
miners from other third parties. Suppliers have the right to discontinue the sale of their miners and/or to make changes thereto at any
time without prior approval from or notice to us. In addition, suppliers retain the intellectual property rights to such miners. Each
agreement will remain in effect for as long as one or more shipping orders are outstanding thereunder, and may be terminated upon either
party’s uncured material breach or upon insolvency