Coinbase Plans to Establish a New Base in San Francisco, Abandoning the Traditional Headquarters Approach
Coinbase Revives San Francisco Presence, Inks Office Lease
Crypto exchange Coinbase has reaffirmed its commitment to San Francisco, signing a lease for a 150,000 square foot office space in the Mission Rock development. This move, marking Coinbase's return to the city after a three-year hiatus, is set to make up more than half of Building B at the waterfront development.
The deal, secured by Coinbase at 1090 Dr. Maya Angelou Lane, has been warmly welcomed by Mayor Daniel Lurie, who wrote on social media yesterday that San Francisco is "the place to build and grow." Coinbase's new office will serve as its largest single workspace, according to reports.
In response to Mayor Lurie's welcome, Coinbase CEO Brian Armstrong acknowledged that improvements were needed in the city, which he described as "badly run for many years." However, he also acknowledged the work Mayor Lurie has undertaken and its impact.
Two weeks prior, Coinbase was listed in the S&P 500, asserting its position among U.S. publicly listed companies.
Coinbase paid $25 million to terminate an office lease in 2023, following its shift to a remote-first model in February 2021. The company officially closed its San Francisco office, formerly its headquarters, in 2022. Although the precise closure date was not publicized, its office at 430 California Street was fully decommissioned that year.
Another U.S. exchange, Kraken, vacated the city around the same time, with its former CEO, Jesse Powell, citing deterioration since he moved there in 2013.
Addressing concerns about San Francisco's tax-heavy environment, Armstrong stated that the company had not abandoned the region, with many employees residing there. He emphasized that Coinbase goes "where the talent is."
Data from the tax consulting and advisory firm Ryan reveals that San Francisco businesses pay taxes according to their annual revenue, with a combination of central taxes potentially reaching up to 4% of total revenue for larger companies.
Coinbase's annual report to the Securities and Exchange Commission (SEC) for late 2024 describes it as a "remote-first company" operating without a headquarters, supporting a workforce of roughly 3,800 employees. The report records $132.3 million in global total operating lease obligations for corporate offices, with $9.9 million due within the next 12 months.
- Coinbase, a prominent cryptocurrency exchange, has restarted its affiliation with San Francisco, securing a 150,000 square foot office space in the Mission Rock development.
- The return of Coinbase to the city, after a three-year absence, signifies the establishment of their largest single workspace.
- As Coinbase has reinforced its presence in San Francisco, the company has expressed its dedication to investing in a city that encourages innovation in finance, technology, and real-estate.
- Despite the tax-heavy environment in San Francisco, Coinbase has chosen to remain in the region, emphasizing the importance of being located where the best talent resides.
- Meanwhile, the advent of cryptocurrencies and decentralized finance has given rise to new opportunities in the digital assets sector, with companies like Coinbase paving the way for the growth of NFTs, Initial Coin Offerings (ICOs), and the broader cryptocurrency market.
