BitGo Packs Up Silicon Valley Roots Ahead of IPO
Another crypto heavyweight is quietly redrawing the U.S. tech map.
BitGo, a California-born cryptocurrency infrastructure startup targeting a $1.96 billion valuation, has officially moved its headquarters from Palo Alto to Sioux Falls, South Dakota, according to a December filing with the U.S. Securities and Exchange Commission.
The move comes at a pivotal moment for the company — and amid growing controversy in California over a proposed billionaire wealth tax that has ignited fierce debate across the tech industry.
Why Sioux Falls? A Strategic Shift
BitGo now occupies 5,250 square feet of office space in Sioux Falls, under a lease that runs through 2028. While the filing doesn’t explicitly explain the relocation, the timing has raised eyebrows.
The digital asset security firm provides custody and infrastructure tools that help businesses store, manage, and secure crypto assets, making regulatory clarity and cost efficiency critical to its operations — especially as it prepares for a public listing.
As of September, BitGo reported a global footprint that includes offices in:
San Francisco
Palo Alto
New York
Canada
India
Germany
Singapore
South Korea
Dubai
The company employs 566 full-time workers worldwide.
Remote Work Changes the Rules
Like many modern tech firms, BitGo is no longer bound by a single physical hub.
The rise of remote and hybrid work has allowed the company to recruit talent far beyond its headquarters. Its careers page lists openings across multiple regions, including California and South Dakota, with a mix of remote and on-site roles.
Some positions still require employees to work in person — but BitGo’s flexible hiring approach reflects a broader trend reshaping how and where tech companies operate.
California’s Billionaire Tax Looms Large
Although BitGo hasn’t publicly linked its move to California policy, the backdrop is hard to ignore.
A proposed Billionaire Tax Act would impose a one-time 5% tax on the total wealth of Californians worth more than $1 billion. The initiative still needs enough signatures to reach the November ballot, but it has already sparked intense backlash.
BitGo CEO Mike Belshe has been vocal about his opposition.
“Who in their right mind would found a new business in California if California does this?” Belshe wrote on X in late December, warning that the tax could hurt startups and innovation.
Supporters of the tax argue the concerns are exaggerated. The proposal would apply to roughly 200 billionaires, and backers — including the Service Employees International Union–United Healthcare Workers West — claim it could raise $100 billion, largely for healthcare funding to offset federal cuts.
They also note that most billionaires haven’t fled the state.
A Broader Tech Exodus?
BitGo isn’t alone in rethinking California.
High-profile companies like Oracle and X (formerly Twitter) have already moved their headquarters out of the state, citing regulatory and business environment concerns. Even prominent tech founders such as Larry Page and Sergey Brin have shifted parts of their operations elsewhere.
Whether BitGo’s move signals a permanent trend or a strategic one-off remains unclear — the company has not responded to direct questions about its headquarters change.
What This Means for Crypto and California
BitGo’s relocation underscores a growing tension between state-level tax policy and startup competitiveness, particularly in high-growth sectors like crypto.
As California debates how to fund public services, tech firms weighing IPOs and long-term expansion are quietly voting with their feet.
For BitGo, South Dakota offers a quieter, potentially friendlier base — just as the company prepares for its next chapter on the public stage.
One thing is certain: the battle between innovation, regulation, and taxation is far from over — and crypto companies are watching closely.