Company: FUFU
Filing Date: 2025-07-08
Form Type: F-3
Source: 0001213900-25-061902
Chunk: 40

Company: Bitfufu Inc.
Filing Date: 2025-07-08
Form: F-3
Chunk 40
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. corporation to be
treated as a U.S. corporation for U.S. federal income tax purposes. If it were determined that we should be taxed as a U.S. corporation
for U.S. federal income tax purposes under section 7874 of the Code, we would be liable for U.S. federal income tax on
our income like any other U.S. corporation, and certain distributions made by us to non-U.S. holders of Class A Ordinary
Shares would be subject to U.S. withholding tax at the rate of 30% or such lower rate as provided by an applicable treaty. As a result,
taxation as a U.S. corporation could have a material adverse effect on our financial position and results from operations. The section 7874
rules are complex and require analysis of all relevant facts and circumstances, and there is limited guidance and significant uncertainties
as to their application.

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Under section 7874 of
the Code, a corporation created or organized outside the United States (i.e., a non-U.S. corporation) will nevertheless be treated
as a U.S. corporation for U.S. federal income tax purposes (and, therefore, be a U.S. tax resident subject to U.S. federal
income tax on its worldwide income) if (1) the non-U.S. corporation 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.

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