Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 172

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 10
Chunk 172
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 Class A ordinary shares will be considered readily tradable on an established securities market in future years.
Non-corporate U. S. Holders that do not meet a minimum holding period requirement or that elect to treat the dividend income
as “investment income” pursuant to Section 163(d)(4) of the Code (dealing with the deduction for investment interest
expense) will not be eligible for the reduced rates of taxation regardless of our status as a qualified foreign corporation. In addition,
the rate reduction will not apply to dividends if the recipient of a dividend is obligated to make related payments with respect to positions
in substantially similar or related property. This disallowance applies even if the minimum holding period has been met. Finally, we will
not constitute a qualified foreign corporation for purposes of these rules if we are a PFIC for the taxable year in which we pay a dividend
or for the preceding taxable year. See the discussion below under “ - Passive Foreign Investment Company Status.”

The amount of any dividend
paid in foreign currency will be the U. S. dollar value of the foreign currency distributed by us, calculated by reference to the
spot exchange rate in effect on the date the dividend is includible in the U. S. Holder’s income, regardless of whether the
payment is in fact converted into U. S. dollars on the date of receipt. Generally, a U. S. Holder should not recognize any foreign
currency gain or loss if the foreign currency is converted into U. S. dollars on the date the payment is received. However, any gain
or loss resulting from currency exchange fluctuations during the period from the date the U. S. Holder includes the dividend payment
in income to the date such U. S. Holder actually converts the payment into U. S. dollars will be treated as ordinary income or
loss.

To the extent that the amount
of any distribution made by us on the Class A ordinary shares exceeds our current and accumulated earnings and profits for a taxable year
(as determined under U. S. federal income tax principles), the distribution will first be treated as a tax-free return of capital,
causing a reduction in the adjusted basis of the U. S. Holder’s Class A ordinary shares, and to the extent the amount of the
distribution exceeds the U. S. Holder’s tax basis, the excess will be taxed as capital gain recognized on a sale or exchange
as described below under “ - Sale, Exchange, Redemption or Other Taxable Disposition of Class A ordinary shares