Company: FUFU
Filing Date: 2025-11-07
Form Type: F-3
Source: 0001213900-25-107483
Chunk: 42

Company: Bitfufu Inc.
Filing Date: 2025-11-07
Form: F-3
Chunk 42
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 assuming BitFuFu Inc. is not treated as a U.S. corporation for U.S. federal income tax purposes under
Section 7874 of the Code.

Distribution on Class A Ordinary Shares

Subject to the PFIC rules
discussed below “—Passive Foreign Investment Company Status,” a U.S. Holder generally will be required
to include in gross income any distribution of cash or property paid on Class A Ordinary Shares that is treated as a dividend for
U.S. federal income tax purposes. A distribution on such shares generally will be treated as a dividend for U.S. federal income
tax purposes to the extent the distribution is paid out of our current or accumulated earnings and profits (as determined under U.S. federal
income tax principles). Such dividends paid by us will be taxable to a corporate U.S. Holder at regular rates and will not be eligible
for the dividends-received deduction generally allowed to domestic corporations in respect of dividends received from other domestic
corporations.

Dividends received by non-corporate U.S. Holders
from a “qualified foreign corporation” may be eligible for reduced rates of taxation, provided that certain holding period
requirements and other conditions are satisfied. For these purposes, a non-U.S. corporation will be treated as a qualified foreign
corporation with respect to dividends paid by that corporation on shares that are readily tradable on an established securities market
in the United States. The Treasury guidance indicates that shares listed on the Nasdaq will be considered readily tradable on
an established securities market in the United States. Although the Class A Ordinary Shares are currently listed on the Nasdaq,
there can be no assurance that the 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