California crypto startup moves to South Dakota as debate over proposed wealth tax heats up

Company Overview - BitGo, a California cryptocurrency startup, has relocated its headquarters from Palo Alto to Sioux Falls, South Dakota, ahead of its initial public offering, amid discussions regarding a proposed billionaire tax in California [1][4] - The company is targeting a valuation of $1.96 billion and provides tools for businesses to manage and secure their digital assets [2] Office Space and Employment - BitGo occupies 5,250 square feet of office space in Sioux Falls under a lease that will expire in 2028, and previously had offices in multiple locations including San Francisco, Palo Alto, New York, Canada, India, Germany, Singapore, South Korea, and Dubai [2] - As of September, BitGo employed 566 full-time employees, with some positions available for remote work [2][3] Regulatory Environment - The move to South Dakota is part of a trend where businesses are relocating due to dissatisfaction with California regulations, as seen with other companies like Oracle and X [4] - The proposed Billionaire Tax Act in California would impose a one-time 5% tax on individuals with a net worth exceeding $1 billion, aiming to raise $100 billion primarily for healthcare [5][7] Industry Reactions - Critics of the proposed tax, including BitGo's CEO Mike Belshe, argue that it could deter startups from founding in California, questioning the viability of new businesses under such taxation [6] - Proponents of the tax maintain that fears of billionaires leaving California are exaggerated, despite some tech leaders relocating their companies [6][7]