Company: FUFU
Filing Date: 2025-11-07
Form Type: F-3
Source: 0001213900-25-107483
Chunk: 41

Company: Bitfufu Inc.
Filing Date: 2025-11-07
Form: F-3
Chunk 41
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 directly or indirectly acquires substantially all of the
assets held directly or indirectly by a U.S. corporation, (2) the non-U.S. corporation’s expanded affiliated group
does not have substantial business activities in the non-U.S. corporation’s country of organization or incorporation relative
to the expanded affiliated group’s worldwide activities (the “substantial business activities test”), and (3) the
shareholders of the acquired U.S. corporation hold at least 80% (by either vote or value) of the stock of the non-U.S. acquiring
corporation after the acquisition by reason of holding shares in the U.S. acquired corporation, as determined under complex share
ownership rules described below, which are uncertain in their application in many circumstances and are intended to increase the percentage
ownership for these purposes (the “Ownership Test”). For this purpose, “expanded affiliated group” generally means
the foreign acquiring corporation and all subsidiary corporations in which such foreign corporation owns, directly or indirectly, more
than 50% of the stock (by vote and value) after the foreign acquiring corporation’s acquisition of the assets of the U.S. corporation.

We do not expect to satisfy
the substantial business activities test, and accordingly, we must determine whether the Ownership Test has been met. Based on the complex
rules for determining share ownership under section 7874 of the Code and Treasury Regulations promulgated thereunder and certain factual
assumptions, our view is that, we do not expect to satisfy the Ownership Test, and our view is that section 7874 applies in a manner such
that we are not treated as a U.S. corporation for U.S. federal income tax purposes.

The application of the Ownership
Test is extremely complex. The applicable Treasury Regulations relating to the Ownership Test are subject to significant uncertainty and
there is limited guidance regarding their application. 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,