Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 171

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 10
Chunk 171
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 application. Moreover, the application of the Ownership Test to the facts and circumstances
of the Business Combination are uncertain. Accordingly, our expectation that section 7874 of the Code does not apply to treat us
as a U. S. corporation for U. S. federal income tax purposes is subject to challenge, and there can be no assurance that the IRS
will not take a contrary position to those described above or that a court will not agree with a contrary position of the IRS in the event
of litigation.

U. S. Federal Income
Tax Consequences of Ownership and Disposition of Class A ordinary shares

The following discussion is
a summary of certain material U. S. federal income tax consequences of the ownership and disposition of Class A ordinary shares by
U. S. Holders, assuming BitFuFu Inc. is not treated as a U. S. corporation for U. S. federal income tax purposes under Section 7874
of the Code.

Distribution on Class A
ordinary shares

Subject to the PFIC rules
discussed below “ - Passive Foreign Investment Company Status,” a U. S. Holder generally will be required to include
in gross income any distribution of cash or property paid on Class A ordinary shares that is treated as a dividend for U. S. federal
income tax purposes. A distribution on such shares generally will be treated as a dividend for U. S. federal income tax purposes to
the extent the distribution is paid out of our current or accumulated earnings and profits (as determined under U. S. federal income
tax principles). Such dividends paid by us will be taxable to a corporate U. S. Holder at regular rates and will not be eligible for
the dividends-received deduction generally allowed to domestic corporations in respect of dividends received from other domestic
corporations.

Dividends received by non-corporate U. S. Holders
from a “qualified foreign corporation” may be eligible for reduced rates of taxation, provided that certain holding period
requirements and other conditions are satisfied. For these purposes, a non-U. S. corporation will be treated as a qualified foreign
corporation with respect to dividends paid by that corporation on shares that are readily tradable on an established securities market
in the United States. The Treasury guidance indicates that shares listed on the Nasdaq will be considered readily tradable on
an established securities market in the United States. Although the Class A ordinary shares are currently listed on the Nasdaq, there
can be no assurance that the