Company: FUFU
Filing Date: 2025-11-07
Form Type: F-3
Source: 0001213900-25-107483
Chunk: 44

Company: Bitfufu Inc.
Filing Date: 2025-11-07
Form: F-3
Chunk 44
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 or loss if the holder’s holding period in the Class A Ordinary Shares exceeds
one year at the time of the disposition. Preferential tax rates may apply to long-term capital gains of non-corporate U.S. Holders.
The deductibility of capital losses is subject to limitations. Any gain or loss recognized by a U.S. Holder on the sale or exchange
of Class A Ordinary Shares will generally be treated as U.S. source gain or loss.

Passive Foreign Investment Company Status

Certain adverse U.S. federal
income tax consequences could apply to a U.S. Holder if we, or any of our subsidiaries, is treated as a PFIC for any taxable year
during which the U.S. Holder holds Class A Ordinary Shares. A non-U.S. corporation will be classified as a PFIC for any
taxable year (a) if at least 75% of its gross income in a taxable year, including its pro rata share of the gross income of any entity
in which it is considered to own at least 25% of the interest by value, is passive income, or (b) if at least 50% of its assets in
a taxable year of the foreign corporation, ordinarily determined based on fair market value and averaged quarterly over the year, including
its pro rata share of the assets of any entity in which it is considered to own at least 25% of the interest by value, are held for the
production of, or produce, passive income. Passive income generally includes dividends, interest, rents and royalties (other than rents
or royalties derived from the active conduct of a trade or business) and gains from the disposition of passive assets. The application
of these 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 to hold 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. Further,
the digital assets themselves could be treated as passive assets.

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Whether we or any of our
subsidiaries is treated as a PFIC for U.S. federal income tax purposes is a factual determination that must be made annually at the close
of each taxable year and, thus, is subject to significant uncertainty. Among other factors, fluctuations in the market price of Class
A Ordinary Shares and how, and how