Company: GSRF
Filing Date: 2025-09-05
Form Type: 424B4
Source: 0001213900-25-084652
Chunk: 260

Company: GSR IV Acquisition Corp.
Filing Date: 2025-09-05
Form: 424B4
Chunk 260
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 the U.S. Holder’s tax basis in the right, increased by the amount paid to convert the right. It is unclear whether a U.S. Holder’s holding period for the ordinary share will commence on the date of conversion of the right or the day following the date of conversion 167 of the right; in either case, the holding period will not include the period during which the U.S. Holder held the right. If a right is allowed to lapse unconverted, a U.S. Holder will generally recognize a capital loss equal to such holder’s tax basis in the right. The tax consequences of a cashless conversion of a right are not clear under current U.S. federal income tax law. Subject to the PFIC rules discussed below, a cashless conversion may be tax -deferred, either because the conversion is not a realization event or because the conversion is treated as a “recapitalization” within the meaning of Section 368(a)(1)(E) of the Code. Although we expect a U.S. Holder’s cashless conversion of our rights (including after we provide notice of our intent to redeem rights for cash) to be treated as a recapitalization, a cashless conversion could alternatively be treated as a taxable exchange in which gain or loss would be recognized. In either tax -deferredsituation, a U.S. Holder’s tax basis in the ordinary shares received would generally equal the U.S. Holder’s tax basis in the rights. If a cashless conversion is not a realization event, it is unclear whether a U.S. Holder’s holding period for the ordinary shares would be treated as commencing on the date of conversion of the right or the day following the date of conversion of the right. If a cashless conversion is treated as a recapitalization, the holding period of the ordinary shares would include the holding period of the rights. If a cashless conversion is treated as a taxable exchange, a U.S. Holder could be deemed to have surrendered rights with an aggregate fair market value equal to the conversion price for the total number of rights to be conversion. Subject to the PFIC rules discussed below, the U.S. Holder would recognize capital gain or loss in an amount equal to the difference between the fair market value of the rights deemed surrendered and the U.S. Holder’s tax basis in such rights. In this case, a U.S. Holder’s tax basis in the ordinary shares received would equal the sum of the U.S. Holder’s initial investment in the rights converted (i.e