Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 37

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 37
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 operations. Our
business, financial condition and results of operations may be materially and adversely affected by these adverse changes in the regulatory
and policy environment.

Concerns about greenhouse gas emissions
and global climate change may result in environmental taxes, charges, assessments or penalties and could have a material adverse effect
on our business, financial condition and results of operations.

The effects of human activity
on global climate change have attracted considerable public and scientific attention, as well as the attention of the United States
and other governments. Efforts are being made to reduce greenhouse gas emissions, particularly those from coal combustion power plants,
some of which plants we and our hosting facility suppliers may rely upon for power. The added cost of any environmental taxes, charges,
assessments or penalties levied on such power plants could be passed on to us, increasing the cost to provide hosting services to our
customers. Any enactment of laws or promulgations of regulations regarding greenhouse gas emissions by the United States, or any
domestic or foreign jurisdiction in which we conduct business, could have a material adverse effect on our business, financial condition
or results of operations.

If there are significant changes to the
method of validating blockchain transactions, such changes could harm our self-mining business and reduce demand for our cloud-mining and
hosting services.

New digital asset transaction
protocols are continually being deployed, and existing and new protocols are in a state of constant change and development. While certain
validation protocols currently employ a “proof of work” consensus algorithm, whereby transaction processors are required to
expend significant amounts of electrical and hash calculations to solve complex mathematical problems in order to validate transactions
and create new blocks in a blockchain, there may be a shift towards adopting alternative validating protocols. These protocols may include
a “proof of stake” algorithm or an algorithm based on a protocol other than proof of work, which may decrease the reliance
on mining capacity as an advantage to validating blocks. Our transaction processing operations are currently designed to primarily support
a proof of work consensus algorithm. Should the algorithm shift from a proof of work validation method to a proof of stake method, mining
would require less energy and may render any company that maintains advantages in the current climate (for example, from lower priced
electricity, processing, property or hosting) less competitive. As a result of our efforts to optimize and improve the efficiency of our
operations, we may be exposed to the risk in the future of losing the benefit of our capital investments and the competitive advantage
we hope to