Company: FUFU
Filing Date: 2025-03-13
Form Type: 424B3
Source: 0001213900-25-023693
Chunk: 59

Company: Bitfufu Inc.
Filing Date: 2025-03-13
Form: 424B3
Chunk 59
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 the Business Combination, then section 7874 of
the Code is generally expected to treat us 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. Moreover, the application of the Ownership Test to the facts and circumstances
of the Business Combination are uncertain. 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.

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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
requirements and other conditions are satisfied. For these purposes, a non-U.S. corporation will be treated as a qualified foreign
corporation with respect to dividends paid by that corporation on shares that are readily tradable