Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 99

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 4
Chunk 99
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 price.

As of the date of this Report,
our digital assets are mined to and stored in offline cold wallet, which is a physical device that holds digital assets offline and aims
to prevent hackers from being able to access digital assets via traditional internet-hacking means. Access to digital assets in such
cold wallet requires separate authentication from different authorized individuals.

Cloud-mining services

Our cloud-mining services
provide a one-stop solution that enables customers at all levels to purchase hash calculation services and earn digital asset mining
rewards on our cloud-based platform. Our cloud-mining services also enable customers to save the usually high up-front investment
in purchasing expensive miners. Instead, customers can select from a suite of cloud-mining service plans on our platform, based primarily
on different product types and plan duration. We adjust the pricing of cloud-mining products from time to time based on the then
prevailing market price of Bitcoin and the estimated costs associated with operating the respective miner types. However, the fee rate
of an order placed by customers on our platform is fixed at time of placing, consisting of an upfront service fee, and subsequent service
fees charged at more flexible intervals before they are incurred. We also offer interest-bearing credit periods to some customers within
the agreed service period, which requires Bitcoin as collaterals to secure the collection of accounts receivable. Currently, the cloud-mining services
primarily support the mining of Bitcoin. We receive digital assets, such as BTC, ETH, BCH and USDT, as payments for our cloud-mining and
hosting services. Such digital assets would be automatically converted into USDT. Since October 2022, we have begun to convert USDT into
U. S. dollars and deposit them with banking institutions on a timely basis according to our treasury management strategy.

Our results of operations
for cloud-mining services are affected by the value of Bitcoin, expected blockchain difficulty, the purchase cost or lease expense
of mining equipment, and the cost of hosting services (in particular the cost of electricity), as well as the pricing and duration of
our cloud-mining services. Cost of revenues for cloud-mining services mainly consists of lease expense of mining equipment,
procurement cost of hash rate, hosting expenses or electricity fees, depreciation expenses, and system maintenance costs. In 2022, 2023
and 2024, the breakeven point for our cloud-mining services was US$24,000, US$24,100 and US$52,920