Company: FUFU
Filing Date: 2025-07-08
Form Type: F-3
Source: 0001213900-25-061902
Chunk: 41

Company: Bitfufu Inc.
Filing Date: 2025-07-08
Form: F-3
Chunk 41
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 not expect to satisfy the substantial business
activities test, and accordingly, we must determine whether the Ownership Test has been met. Based on the complex rules for determining
share ownership under section 7874 of the Code and Treasury Regulations promulgated thereunder and certain factual assumptions, our view
is that, we do not expect to satisfy the Ownership Test, and our view is that section 7874 applies in a manner such that we are not treated
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. 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.

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 dividends paid by us will be taxable to a corporate U.S. Holder at regular rates and will not be eligible
for the dividends-received deduction generally allowed to domestic corporations in respect of dividends received from other domestic
corporations.

Dividends received by non-corporate U.S. Holders
from a “qualified foreign corporation” may be eligible for reduced rates of taxation, provided that certain holding period