Company: FUFU
Filing Date: 2025-03-13
Form Type: 424B3
Source: 0001213900-25-023693
Chunk: 62

Company: Bitfufu Inc.
Filing Date: 2025-03-13
Form: 424B3
Chunk 62
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 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.

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 quickly, we use liquid assets and cash obtained in the Business Combination may influence
whether we or any of our subsidiaries is treated as PFIC. Accordingly, we are unable to determine whether we or any of our subsidiaries
will be treated as a PFIC for the taxable year of the Business Combination or for future taxable years, and there can be no assurance
that we or any of our subsidiaries will not be treated as a PFIC for any taxable year. Moreover, we do not expect to provide a PFIC annual
information statement for 2024 or going forward, which will preclude U.S. Holders from making or maintaining a “qualified
electing fund” election under section 1295 of the Code.

If we were determined to
be a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder of Class A Ordinary
Shares and, in the case of Class A Ordinary Shares, the U.S. Holder did not make a valid “mark-to-market” election,
such U.S. Holder generally will be subject to special rules with respect to: (i) any gain recognized by the U.S. Holder
on the sale or other disposition of Class A Ordinary Shares and (ii) any “excess distribution” made to the U.S. Holder
(generally, any distributions to such U.S. Holder during a taxable year of the