Company: FUFU
Filing Date: 2025-05-22
Form Type: CORRESP
Source: 0001213900-25-046616
Chunk: 1

Company: Bitfufu Inc.
Filing Date: 2025-05-22
Form: CORRESP
Chunk 1
---
 clarify for us whether bitcoin sold to cover electricity and hosting costs is sold “nearly immediately”         
 after acquisition, as that phrase is contemplated under ASC Topic 230-10-45-27A.                                                      |

| ● | Your consideration for clarifying your general treasury                                                       
 policy in the Liquidity and Capital Resources disclosure of Item 5 and in your financial statement footnotes. |

In response to the Staff’s comment, we respectfully
clarify that we did not classify proceeds from sales of our mined bitcoin to cover the electricity and hosting costs as operating activities.
This was because our mined bitcoins were not converted “nearly immediately” after acquisition into cash according to the guidance
in ASC 230-10-45-27A. Instead, they were converted into cash at least three months after they were mined due to the first-in-first-out
policy that we adopted for selling bitcoin. The first-in-first-out policy was not only applied to accounting treatment but was also reflected
in the cold wallet’s settings: bitcoins mined by us were received and stored in the Company’s cold wallets. When the Company
needs to transfer bitcoin from its cold wallet to one of its accounts at a crypto exchange for sale, on an as needed basis which can vary
from time to time, those bitcoins that were first received and stored into the cold wallet will be transferred first by default settings
of the cold wallet. In practice, the sold bitcoins were usually obtained by the Company several months ago.

We would also like to clarify our general treasury
policy in the following details: we aim to hold as many bitcoins as possible for long-term price appreciation while selling a portion
of them, on an as needed basis which can vary from time to time, to provide working capital for our operational needs. The reason we sell
a portion of our bitcoin holding on a frequent basis is to avoid the situation that we may be forced to sell a big chunk of bitcoin to
cover operation costs at an unfavorable market price for liquidity reasons. Our goal is to achieve an average selling price similar to
the average market price over a certain period rather than betting on the spot rate hike of some particular date. On top of that, we strategically
may apply additional approaches during high market volatilities. We may sell additional bitcoin following a rapid increase in the price
of bitcoin or temporarily suspended bitcoin selling when the price declines to a point that we believe is unsustainable in the long run
and the market price will recover or grow higher in the coming months. For instance, in