Company: FUFU
Filing Date: 2025-03-05
Form Type: POS AM
Source: 0001213900-25-020703
Chunk: 61

Company: Bitfufu Inc.
Filing Date: 2025-03-05
Form: POS AM
Chunk 61
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 7874 applies in a manner such that we are not
treated as a U.S. corporation for U.S. federal income tax purposes. However, our position depends in part on the position that
the Ownership Test is determined after the Business Combination rather than immediately after the Redomestication Merger for purposes
of section 7874 of the Code.

No IRS ruling Has been requested
or will be obtained regarding the U.S. federal income tax consequences of the Business Combination. If the IRS were to apply section 7874
of the Code immediately after completion of the Redomestication Merger, but before the Business Combination, then section 7874 of
the Code is generally expected to treat us as a U.S. corporation for U.S. federal income tax purposes.

The application of the Ownership
Test is extremely complex. The applicable Treasury Regulations relating to the Ownership Test are subject to significant uncertainty
and there is limited guidance regarding their application. Moreover, the application of the Ownership Test to the facts and circumstances
of the Business Combination are uncertain. Accordingly, our expectation that section 7874 of the Code does not apply to treat us
as a U.S. corporation for U.S. federal income tax purposes is subject to challenge, and there can be no assurance that the
IRS will not take a contrary position to those described above or that a court will not agree with a contrary position of the IRS in
the event of litigation.

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U.S. Federal Income Tax Consequences of Ownership and Disposition of Class A Ordinary Shares

The following discussion
is a summary of certain material U.S. federal income tax consequences of the ownership and disposition of Class A Ordinary
Shares by U.S. Holders, assuming BitFuFu Inc. is not treated as a U.S. corporation for U.S. federal income tax purposes
under Section 7874 of the Code.

Distribution on Class A Ordinary Shares

Subject to the PFIC rules
discussed below “—Passive Foreign Investment Company Status,” a U.S. Holder generally will be required
to include in gross income any distribution of cash or property paid on Class A Ordinary Shares that is treated as a dividend for
U.S. federal income tax purposes. A distribution on such shares generally will be treated as a dividend for U.S. federal income
tax purposes to the extent the distribution is paid out of our current or accumulated earnings and profits (as determined under U.S. federal
income tax principles). Such