Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 87

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 87
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2025. ASU 2023-08 also requires us to provide
certain interim and annual disclosures with respect to our bitcoin holdings. The standard is now effective, and we have applied a cumulative-effect
net increase to the opening balance of retained earnings as of January 1, 2025 of $12.745 billion. Due in particular to the volatility
in the price of bitcoin, we expect the adoption of ASU 2023-08 to have a material impact on our financial results in future periods, increase
the volatility of our financial results, and affect the carrying value of our bitcoin on our balance sheet. As described in greater detail
under the risk factor heading “Risks Related to Our Business in General—Unrealized fair value gains on our bitcoin holdings
could cause us to become subject to the corporate alternative minimum tax under the Inflation Reduction Act of 2022,” ASU 2023-08
could also have adverse tax consequences. These impacts could in turn have a material adverse effect on our financial results and the
market price of our listed securities. 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 our historical financial statements,
our future results will not be comparable to results from periods prior to our adoption of the guidance. The broader digital assets industry,
including the technology associated with digital assets, the rate of adoption and development of, and use cases for, digital assets, market
perception of digital assets, and the legal, regulatory, and accounting treatment of digital assets are constantly developing and changing,
and there may be additional risks in the future that are not possible to predict.

Bitcoin is a highly volatile asset, and fluctuations in the price of bitcoin have in the past influenced and are likely to continue to influence our financial results and the market price of our listed securities.

Bitcoin is a highly volatile asset, and fluctuations
in the price of bitcoin have in the past influenced and are likely to continue to influence our financial results and the market price
of our listed securities. Our financial results and the market price of our listed securities would be adversely affected, and our business
and financial condition would be negatively impacted, if the price of bitcoin decreased substantially (as it has in the past, including
during 2022), including as a result of:

| ● | decreased user and investor confidence in bitcoin, including 
 due to the various factors