Cryptocurrency firm BitGo has relocated its headquarters from Palo Alto, California, to Sioux Falls, South Dakota, according to a December filing with the U.S. Securities and Exchange Commission. The move comes as the company prepares for an initial public offering and as California debates a proposed tax on its wealthiest residents.
BitGo’s Expansion and Relocation
BitGo, which aims for a $1.96 billion valuation, provides digital asset management and security tools for businesses. The company currently leases 5,250 square feet of office space in Sioux Falls with a lease expiring in 2028. As of September, BitGo maintained offices in several global locations, including San Francisco, New York, Canada, India, Germany, Singapore, South Korea, and Dubai, employing 566 full-time staff.
The rise of remote work has enabled BitGo to recruit employees outside of its primary locations. Current job postings include both remote and on-site positions in California and South Dakota. The SEC filing did not state a specific reason for the headquarters move.
California’s Proposed Billionaire Tax
The relocation occurs during a debate surrounding the “Billionaire Tax Act” in California. The proposed initiative, which still requires signatures to qualify for the November ballot, would impose a one-time 5% tax on the total wealth of Californians worth over $1 billion. Revenue generated is intended to fund healthcare initiatives, offsetting cuts made by the previous administration.
BitGo Chief Executive Mike Belshe voiced opposition to the proposed tax on X, questioning whether anyone would start a new business in California if the measure passes. Other companies, including Oracle and X, have recently moved their headquarters out of California.
Proponents of the tax, including the Service Employees International Union-United Healthcare Workers West, argue that concerns about an exodus of billionaires are overstated. They estimate the tax would generate $100 billion and note that most billionaires currently reside in California.
Frequently Asked Questions
What does BitGo do?
BitGo offers tools to businesses that help them manage and secure their digital assets.
How many employees does BitGo have?
As of September, BitGo had 566 full-time employees.
What is the Billionaire Tax Act?
The Billionaire Tax Act is a proposed initiative in California that would impose a one-time 5% tax on the total wealth of Californians worth more than $1 billion.
How might the outcome of the proposed tax impact future business decisions in California?
