Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 62

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 62
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 rise to ordinary
income and guidance with respect to the determination of the tax basis of digital currency. However, the Notice and the Revenue Ruling &
FAQs do not address other significant aspects of the U. S. federal income tax treatment of digital assets and related transactions.
Moreover, there continues to be uncertainty with respect to the timing and amount of income inclusions for various digital asset transactions
including, but not limited to, staking rewards and other digital asset products. Furthermore, the accounting treatment for revenues from
cryptocurrency transactions is currently under review and subject to change. Failure to properly account for and report the transactions
and other items related to the digital assets to relevant tax authorities, such as the IRS, could have negative outcomes for us and harm
our reputation with customers and others.

There can be no assurance
that the IRS or other foreign tax authority will not alter its existing positions with respect to digital assets in the future or that
a court would uphold the treatment set forth in the existing IRS guidance. It is also unclear what additional guidance may be issued in
the future on the treatment of existing digital asset transactions and future digital asset innovations for purposes of U. S. federal
income tax or other foreign tax regulations. Any such alteration of existing IRS and foreign tax authority positions or additional guidance
regarding digital asset products and transactions could result in adverse tax consequences for holders of digital assets and could have
an adverse effect on the value of digital assets and the broader digital assets markets. Future technological and operational developments
that may arise with respect to digital currencies may increase the uncertainty with respect to the treatment of digital currencies for
U. S. federal income and non-U. S. tax purposes. The uncertainty regarding tax treatment of digital asset transactions impacts
our customers and could impact our business.

Our tax information reporting and withholding
obligations with respect to transactions involving digital assets are subject to change.

It is unclear whether we may
be required to file information returns with taxing authorities or withhold any taxes with respect to our cryptocurrency mining operations
in any jurisdiction. In our capacity as the facilitator of a cloud-mining platform, we may be deemed to have certain information
reporting or withholding obligations to the IRS or another taxing authority. Changes in applicable laws and administrative guidance could
impose such obligations on us. For example, under the Infrastructure Investment and Jobs Act of 2021 (Pub. L. 117-58),
we may be treated as a “broker” with respect to digital assets transactions we facilitate.