BitGo, a crypto firm recently valued at $2.59 billion, moved its headquarters from Palo Alto to Sioux Falls, South Dakota, and the chief executive officer indicated that the proposed wealth tax initiative was a factor.
The Los Angeles Times reported January 21 that the company, founded in 2013, has been operating in Sioux Falls since moving its corporate headquarters in December.
“The startup is known as a custodian for digital assets; it provides cryptocurrency wallets for institutions and helps them stay secure, insured and compliant with financial regulations,” the San Francisco Chronicle reported January 14.
BitGo, which has 566 workers worldwide, said it will keep its Palo Alto location, as well as its offices in San Francisco, New York, Canada, India, Germany, Singapore, South Korea and Dubai.
Chief Executive Officer Mike Belshe “has repeatedly derided Gov. Gavin Newsom’s leadership and, more recently, proposals for a billionaire wealth tax,” the Chronicle reported.
In a social media post about the wealth tax initiative, Belshe wrote: “Who in their right mind would found a new business in California if California does this?”