Coinbase to open a new office in San Francisco after dropping the headquarters model

Crypto Exchange Coinbase has signed a lease for office space in the Mission Rock Development of San Francisco, so that the return of the Crypto Exchange to the city was marked after he had left his head office about three years ago.

The move is based on a deal Coinbase protected for a place of 150,000 square foot at 1090 Dr. Maya Angelou Lane, and represents more than half of the building B in the development of the water built by Tishman Speyer and the San Francisco Giants.

San Francisco “is the place to build and grow”, mayor Daniel Lurie written Thursday afternoon on X, welcome Coinbase.

The space will serve as the largest office in Coinbase, according to A report from the San Francisco Standard, quoted by Mayor Lurie.

In response to Mayor Lurie, Coinbase CEO Brian Armstrong said that there was still a lot of work to be done to improve the city, “saying that” it was run poorly for years “, later adding that mayor Lurie’s work” did not go unnoticed. “

Coinbase was mentioned two weeks earlier In the S&P 500Cementing his status under publicly mentioned companies in the US.

Tax problems, rent obligations

The return from Coinbase to the city comes after it has paid $ 25 million for the “early termination of an office lease”, are 2023 shareholder shows, after the transition to operating Without a traditional head office in February 2021.

Coinbase announced on 5 May 2021 that it would close its office in San Francisco-the former head office-in 2022 as part of its transition to a remotely-first model. The company emphasized that this movement was intended to ensure that no location would be considered his head office, in accordance with his decentralized personnel strategy.

Although the exact closing date in 2022 was not publicly specified, the office at 430 California Street was completely out of use that year.

In 2022 a similar step from the city was made by Kraken, a rival American exchange, with his former CEO Jesse Powell who said that the city had “fallen quite far”, narration How he saw it “deteriorated” since he moved in 2013.

“We are never abandoned California. Many of our employees live there. We go to where the talent is,” said Armstrong in answer Ensure that San Francisco points out that San Francisco was a ‘tax -heavy state’.

Data collected by the Tax Advice and Consultancy Ryan indicates that companies in San Francisco pay taxes based On their annual income, with two central taxes that become more expensive as companies increase their income.

Small companies that earn less than $ 5 million per year are exempt from the most important business tax, but larger companies can pay up to around 4% of their total income when both taxes are combined, according to Changes in business tax Approved for the city in November last year.

Coinbase’s 10-K SEC INVENTION Before the end of 2024, the company describes as a “remotely first company” that does not “maintain a head office” for its around 3,800 employees.

The report gives $ 132.3 million to global total operational lease obligations for business offices, with $ 9.9 million in the next 12 months.

Edited by Sebastian Sinclair