Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 44

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 44
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business, financial condition and results of operations.

A soft or hard fork on a network could have
a material adverse effect on our business, financial condition and results of operations.

The rules governing a network’s
protocol are subject to constant changes and, at any given time, there may be different groups of developers that can modify a network’s
protocol. As network protocols are not sold and their use does not generate revenues for their development teams, the core developers
are generally not compensated for maintaining and updating the network protocols. Consequently, there is a lack of financial incentive
for developers to maintain or develop networks and the core developers may lack the resources to adequately address emerging issues with
network protocols. Although the Bitcoin and other leading digital asset networks are currently supported by core developers, there can
be no guarantee that such support will continue or be sufficient in the future. To the extent that material issues arise with the Bitcoin
or another network protocol and the core developers and open-source contributors are unable to address the issues adequately or in
a timely manner, the networks may be adversely affected.

Any individual can download
the applicable network software and make any desired modifications that alter the protocols and software of the network, which are proposed
to developers, users and transaction processors on the applicable network through software downloads and upgrades, typically posted to
development forums such asGitHub. com. Such proposed modifications can be agreed upon, developed, adopted and implemented by a
substantial majority of developers, transaction processors and users, which, in such event, results in a “soft fork” or “hard
fork” on the relevant network. A “soft fork” occurs when an updated version of the validating protocol is still “backwards
compatible” with previous versions of the protocol. As a result, non-upgraded network participants with an older version of
the validating protocol will still recognize new blocks or transactions and may be able to confirm and validate a transaction; however,
the functionality of the non-upgraded network participant may be limited. Thus, non-upgraded network participants are incentivized
to adopt the updated version of the protocol. The occurrence of a soft fork could potentially destabilize transaction processing and increase
transaction and development costs and decrease trustworthiness of a network.

A “hard fork”
occurs when the updated version of the validating protocol is not “backwards compatible” with previous versions of the protocol,
and therefore, requires forward adoption by network participants in order to recognize new blocks, validate and verify transactions and
maintain consensus on the relevant blockchain