Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 75

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 75
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 passive foreign investment
company (“ PFIC”), which could result in adverse U. S. federal income tax consequences to U. S. Holders of our Class
A ordinary shares.

Assuming section 7874 of the
Internal Revenue Code of 1986, as amended (the “ Code”) does not apply to treat us as a U. S. corporation for U. S. federal
income tax purposes (see “ - Risks Related to Our Securities - The IRS may not agree with the position that we should be
treated as a foreign corporation for U. S. federal income tax purposes following the Business Combination, which could have a material
adverse effect on our financial position and results from operations and on non-U. S. holders’ securities” for a
more detailed discussion), if we or any of our subsidiaries is a PFIC for any taxable year, or portion thereof, that is included in the
holding period of a U. S. Holder of the Class A ordinary shares, such U. S. Holder may be subject to certain adverse U. S. federal
income tax consequences and may be subject to additional reporting requirements. A non-U. S. corporation will be considered a PFIC for
any taxable year if either (i) at least 75% of its gross income is passive income for such taxable year or (ii) at least 50% of the value
of its assets (based on an average of the quarterly values of the assets during such taxable year) is attributable to assets that produce
or are held for the production of passive income (which includes cash and cash equivalents).

The application of the PFIC
rules to digital assets and operations relating thereto, including Bitcoin and Bitcoin mining operations, is subject to uncertainty. For
example, it is possible that our Bitcoin mining operations could cause us or one or more of our subsidiaries to become a PFIC by holding
digital assets that are treated as commodities or non-inventory property, the excess of gains over losses from the disposition of
which could be treated as passive income, or by holding digital assets that themselves could be treated as passive assets. There is no
assurance that we or our subsidiaries are not currently PFICs for U. S. federal income tax purposes for the taxable year of the Business
Combination or for foreseeable future taxable years. Moreover, we do not expect to provide a PFIC annual information statement for
2024 or going forward, which will preclude U. S. Holders from