Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 48

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 48
---
 it impractical for us to continue our business as contemplated.

An issuer will generally be
deemed to be an “investment company” for purposes of the Investment Company Act if:

  it is an “orthodox” investment company because it is or holds itself out as being engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in sec...  

  it is an inadvertent investment company because, absent an applicable exemption, it owns or proposes to acquire “investment securities” having a value exceeding 40% of the value of its total as...  

We believe that we are not
and will not be primarily engaged in the business of investing, reinvesting or trading in securities, and we do not hold ourselves out
as being engaged in those activities. We intend to hold ourselves out as primarily providing cloud-mining services. Accordingly,
we do not believe that we are an “orthodox” investment company as described in the first bullet point above.

While certain digital assets
may be deemed to be securities, we do not believe that certain other digital assets, in particular Bitcoin, are securities; therefore,
we believe that less than 40% of our total assets (exclusive of U. S. government securities and cash items) on an unconsolidated basis
will comprise digital assets that could be considered investment securities. Accordingly, we do not believe that we are an inadvertent
investment company by virtue of the 40% inadvertent investment company test as described in the second bullet point above. Although we
do not believe any of the digital assets we may own, acquire or mine are securities, there is still some regulatory uncertainty on the
subject, see “ - Risks Related to Our Industry - We face uncertainties relating to whether cloud-mining operations
and a particular digital asset will be deemed as “security” in any relevant jurisdiction, and we may be subject to regulatory
scrutiny, investigations, fines, and other penalties if such digital asset is deemed to be dealing with “security,” which
may adversely affect our business, financial condition and results of operations.” If certain digital assets, including Bitcoin,
were to be deemed securities, and consequently, investment securities by the SEC, we could be deemed an inadvertent investment company.
Similarly, if we were to acquire digital assets deemed investment securities to hold for our own account or to engage in certain transactions,
such as loan or repurchase transactions, we could be deemed an inadvertent investment company.

If we were to be deemed as