Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 173

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 10
Chunk 173
---
.” However,
we may not calculate earnings and profits in accordance with U. S. federal income tax principles. In such event, a U. S. Holder
should expect to generally treat distributions we make as dividends.

Sale, Exchange, Redemption
or Other Taxable Disposition of BitFuFu Securities

Subject to the discussion
below under “ - Passive Foreign Investment Company Status,” a U. S. Holder will generally recognize gain or
loss on any sale, exchange, or other taxable disposition of Class A ordinary shares in an amount equal to the difference between the amount
realized on the disposition and such U. S. Holder’s adjusted tax basis in such Class A ordinary shares. Any gain or loss recognized
by a U. S. Holder on a taxable disposition of Class A ordinary shares will generally be capital gain or loss and will be long-term capital
gain 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