Company: FUFU
Filing Date: 2025-07-08
Form Type: F-3
Source: 0001213900-25-061902
Chunk: 44

Company: Bitfufu Inc.
Filing Date: 2025-07-08
Form: F-3
Chunk 44
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 in
a taxable year of the foreign corporation, ordinarily determined based on fair market value and averaged quarterly over the year, including
its pro rata share of the assets of any entity in which it is considered to own at least 25% of the interest by value, are held for the
production of, or produce, passive income. Passive income generally includes dividends, interest, rents and royalties (other than rents
or royalties derived from 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 may influence whether we or any of our subsidiaries is treated
as PFIC. The Company does not believe that it was a PFIC for the taxable year ended December 31, 2024. However, for the taxable year ending
December 31, 2025 and for future taxable years, there can be no assurance that we or any of our subsidiaries will not be treated as a
PFIC for any such taxable year. Moreover, we do not expect to provide a PFIC annual information statement for 2025 or going forward, which
will preclude U.S. Holders from making or maintaining a “qualified electing fund” election under section 1295 of the Code.

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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