Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 76

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 76
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 making or maintaining a “qualified electing fund” election
under Section 1295 of the Code. See “ Item 10. Additional Information - E. Taxation - Passive Foreign Investment Company
Status” for a more detailed discussion with respect to our potential PFIC status and certain tax implications thereof. U. S. Holders
are urged to consult their tax advisors regarding the possible application of the PFIC rules to holders of our securities.

The IRS may not agree with the position
that we should be treated as a foreign corporation for U. S. federal income tax purposes following the Business Combination, which
could have a material adverse effect on our financial position and results from operations and on non-U. S. holders’ securities.

Although we are incorporated
under the laws of the Cayman Islands, the IRS may assert that we should be treated as a U. S. corporation (and, therefore, a U. S. tax
resident) for U. S. federal income tax purposes pursuant to section 7874 of the Code. For U. S. federal income tax purposes, a
corporation is generally considered a tax resident in the jurisdiction of its organization or incorporation. Because we are incorporated
under the laws of the Cayman Islands, we would generally be classified as a foreign corporation (and, therefore, a non-U. S. tax resident)
for U. S. federal income tax purposes. Section 7874 provides an exception pursuant to which a foreign incorporated entity may,
in certain circumstances, be treated as a U. S. corporation for U. S. federal income tax purposes. These rules are complex and
require analysis of all relevant facts and circumstances, and there is limited guidance and significant uncertainties as to their application.
If it were determined that we should be taxed as a U. S. corporation for U. S. federal income tax purposes under section 7874,
we would be subject to U. S. federal income tax on our taxable income like any other U. S. corporation and certain distributions
made by us to non-U. S. holders’ securities would be subject to U. S. withholding tax at the rate of 30% or such lower rate
as provided by an applicable treaty. Taxation as a U. S. corporation could also have a material adverse effect on our financial position
and results from operations.

As more fully described under
“ Item 10. Additional Information - E. Taxation - Our Tax Residence for U. S. Federal Income Tax