Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 98

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 98
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 in the market price of bitcoin and other digital
assets. These were followed in November 2023, by an SEC enforcement action against Payward Inc. and Payward Ventures Inc., together known
as Kraken, another large trading venue for digital assets. As the price of our listed securities is affected by the value of our bitcoin
holdings, the failure of a major participant in the bitcoin ecosystem could have a material adverse effect on the market price of our
listed securities.

The concentration of our bitcoin holdings enhances the risks inherent in our bitcoin strategy.

As of July 15, 2025, we held approximately 368
bitcoins that were acquired at an aggregate purchase price of $33.3 million and we intend to purchase additional bitcoin and increase
our overall holdings of bitcoin in the future. The concentration of our bitcoin holdings limits the risk mitigation that we could achieve
if we were to purchase a more diversified portfolio of treasury assets, and the absence of diversification enhances the risks inherent
in our bitcoin strategy. The price of bitcoin experienced a significant decline in 2022, and this had, and any future significant declines
in the price of bitcoin would have, a more pronounced impact on our financial condition than if we used our cash to purchase a more diverse
portfolio of assets.

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The emergence or growth of other digital assets, including those with significant private or public sector backing, could have a negative impact on the price of bitcoin and adversely affect our business.

As a result of our bitcoin strategy, our assets
are concentrated in our bitcoin holdings. Accordingly, the emergence or growth of digital assets other than bitcoin may have a material
adverse effect on our financial condition. As of December 31, 2024, bitcoin was the largest digital asset by market capitalization. However,
there are numerous alternative digital assets and many entities, including consortiums and financial institutions, are researching and
investing resources into private or permissioned blockchain platforms or digital assets that do not use proof-of-work mining like the
Bitcoin network. For example, in late 2022, the Ethereum network transitioned to a “proof-of-stake” mechanism for validating
transactions that requires significantly less computing power than proof-of-work mining. The Ethereum network has completed another major
upgrade since then and may undertake additional upgrades in the future. If the mechanisms for validating transactions in Ethereum and
other alternative digital assets are perceived as superior to proof-of-work mining, those digital assets could gain market share relative