Company: FUFU
Filing Date: 2025-03-05
Form Type: POS AM
Source: 0001213900-25-020703
Chunk: 66

Company: Bitfufu Inc.
Filing Date: 2025-03-05
Form: POS AM
Chunk 66
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.S. Holder may make a mark-to-market election
with respect to such shares for such taxable year. If the U.S. Holder makes a valid mark-to-market election for the first taxable
year of the U.S. Holder in which the U.S. Holder holds (or is deemed to hold) Class A Ordinary Shares and for which we
are determined to be a PFIC, such holder generally will not be subject to the PFIC rules described above in respect to its Class A
Ordinary Shares as long as such shares continue to be treated as marketable stock. Instead, in general, the U.S. Holder will include
as ordinary income each year that we are treated as a PFIC the excess, if any, of the fair market value of its Class A Ordinary
Shares at the end of its taxable year over the adjusted basis in its Class A Ordinary Shares. The U.S. Holder also will be
allowed to take an ordinary loss in respect of the excess, if any, of the adjusted basis of its Class A Ordinary Shares over the
fair market value of its Class A Ordinary Shares at the end of its taxable year (but only to the extent of the net amount of previously
recognized income as a result of the mark-to-market election). The U.S. Holder’s adjusted tax basis in its Class A
Ordinary Shares will be adjusted to reflect any such income or loss amounts, and any further gain recognized on a sale or other taxable
disposition of the Class A Ordinary Shares in a taxable year in which we are treated as a PFIC will be treated as ordinary income.
Special tax rules may also apply if a U.S. Holder makes a mark-to-market election for a taxable year after the first taxable
year in which the U.S. Holder holds (or is deemed to hold) its Class A Ordinary Shares and for which we are treated as a PFIC.

The mark-to-market election
is available only for stock that is regularly traded on a national securities exchange that is registered with the Securities and Exchange
Commission, including Nasdaq (on which the Class A Ordinary Shares are listed), or on a foreign exchange or market that the IRS
determines has rules sufficient to ensure that the market price represents a legitimate and sound fair market value. Such stock
generally will be “regularly traded” for any calendar year during which such stock is traded, other than in de minimis quantities,
on at least 15 days during each calendar quarter, but no assurances can be given in this regard