Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 176

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 10
Chunk 176
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 over the fair market value of its Class A
ordinary shares at the end of its taxable year (but only to the extent of the net amount of previously recognized income as a result of
the mark-to-market election). The U. S. Holder’s adjusted tax basis in its Class A ordinary shares will be adjusted to
reflect any such income or loss amounts, and any further gain recognized on a sale or other taxable disposition of the Class A ordinary
shares in a taxable year in which we are treated as a PFIC will be treated as ordinary income. Special tax rules may also apply if a U. S. Holder
makes a mark-to-market election for a taxable year after the first taxable year in which the U. S. Holder holds (or is deemed
to hold) its Class A ordinary shares and for which we are treated as a PFIC.

The mark-to-market election
is available only for stock that is regularly traded on a national securities exchange that is registered with the Securities and Exchange
Commission, including Nasdaq (on which the Class A ordinary shares are listed), or on a foreign exchange or market that the IRS determines
has rules sufficient to ensure that the market price represents a legitimate and sound fair market value. Such stock generally will
be “regularly traded” for any calendar year during which such stock is traded, other than in de minimis quantities, on at
least 15 days during each calendar quarter, but no assurances can be given in this regard with respect to the Class A ordinary shares.
U. S. Holders should consult their own tax advisors regarding the availability and tax consequences of a mark-to-market election
in respect of Class A ordinary shares under their particular circumstances.

If we are a PFIC and, at any
time, has a foreign subsidiary that is classified as a PFIC, U. S. Holders generally would be deemed to own a portion of the shares
of such lower-tier PFIC, and generally could incur liability for the deferred tax and interest charge described above if we were
to receive a distribution from, or dispose of all or part of our interest in, the lower-tier PFIC (even though such U. S. Holder
would not receive the proceeds of those distributions or dispositions) or the U. S. Holders otherwise were deemed to have disposed
of an interest in the lower-tier PFIC. A mark-to-market election generally would not be available with respect to such
lower-tier PFIC. U. S. Holders are urged to