Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 174

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 10
Chunk 174
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 the active conduct of a trade or business) and gains from the disposition of passive assets. The application
of these rules to digital assets and operations relating thereto, including Bitcoin and Bitcoin mining operations, is subject to uncertainty.
For example, it is possible that our Bitcoin mining operations could cause us to hold digital assets that are treated as commodities or
non-inventory property, the excess of gains over losses from the disposition of which could be treated as passive income. Further,
the digital assets themselves could be treated as passive assets.

Whether we or any of our subsidiaries
is treated as a PFIC for U. S. federal income tax purposes is a factual determination that must be made annually at the close of each
taxable year and, thus, is subject to significant uncertainty. Among other factors, fluctuations in the market price of Class A ordinary
shares and how, and how quickly, we use liquid assets and cash obtained in the Business Combination may influence whether we or any of
our subsidiaries is treated as PFIC. Accordingly, we are unable to determine whether we or any of our subsidiaries will be treated
as a PFIC for the taxable year of the Business Combination or for future taxable years, and there can be no assurance that we or
any of our subsidiaries will not be treated as a PFIC for any taxable year. Moreover, we do not expect to provide a PFIC annual information
statement for 2024 or going forward, which will preclude U. S. Holders from making or maintaining a “qualified electing fund”
election under section 1295 of the Code.

If we were determined to be
a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U. S. Holder of Class A ordinary shares
and, in the case of Class A ordinary shares, the U. S. Holder did not make a valid “mark-to-market” election, such U. S. Holder
generally will be subject to special rules with respect to: (i) any gain recognized by the U. S. Holder on the sale or other
disposition of Class A ordinary shares and (ii) any “excess distribution” made to the U. S. Holder (generally, any
distributions to such U. S. Holder during a taxable year of the U. S. Holder that are greater than 125% of the average annual
distributions received by such U. S. Holder in respect of the Class A ordinary shares during the