Company: FUFU
Filing Date: 2025-06-10
Form Type: 424B5
Source: 0001213900-25-053161
Chunk: 16

Company: Bitfufu Inc.
Filing Date: 2025-06-10
Form: 424B5
Chunk 16
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, therefore,
not a U.S. tax resident). Section 7874 of the Code and the Treasury Regulations promulgated thereunder, however, contain specific
rules (more fully discussed below) that may cause a non-U.S. 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.

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,