Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 61

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 61
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ations that we have made for how to account for
or report the tax treatment of digital asset transactions may be subject to change and challenge by relevant tax authorities in various
countries, including the United States. Failure to properly report activity related to digital assets for tax or accounting purposes
may have negative regulatory or legal outcomes and harm our financial condition, results of operations and reputation.

In recent years, the
rise of digital asset prices and transaction volume has attracted the attention of tax authorities. As the laws governing digital assets
are still evolving, the tax treatment of digital assets in various jurisdictions are subject to change. U. S. federal, state and local
non-U. S. jurisdictions could impose, levy or otherwise enforce tax laws against us. While some countries intend to or have imposed
taxation on digital assets and transactions, other tax authorities are silent. As there is considerable uncertainty over the taxation
of digital assets, we cannot guarantee that digital assets and transactions denominated in digital assets will not be subject to further
taxation in the future, including but not limited to additional taxes, interest and penalties. These events could reduce the economic
returns of digital assets and increase the holding costs of digital assets, which could materially and adversely affect the economic returns
to our customers as well as to us for mining activities, and affect our business, financial condition and results of operations. Because
there has been limited guidance for the tax reporting or accounting of digital assets and limited guidance has been provided by the IRS,
it is unclear how digital asset transactions or other actions related to digital assets and related tax consequences should be accounted
for or reported for tax purposes.

In 2014, the IRS released
Notice 2014-21, IRB 2014-16, or the Notice, discussing certain aspects of “convertible virtual currency” (that is,
digital currency that has an equivalent value in real (or fiat) currency or that acts as a substitute for fiat currency) for U. S. federal
income tax purposes. The IRS stated that such digital currency is treated as “property,” not “currency” for purposes
of the rules relating to foreign currency gain or loss, and may be held as a capital asset. In 2019, the IRS released Revenue Ruling 2019-24 and
a set of “ Frequently Asked Questions,” or the Revenue Ruling & FAQs, that provide some additional guidance, including
guidance to the effect that, under certain circumstances, hard forks of digital currencies are taxable events giving