Crypto Firm BitGo Relocates from California to South Dakota

Proposed wealth tax triggers exodus of businesses and high-net-worth individuals from the Golden State

Published on Feb. 15, 2026

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The recent relocation of $1.75 billion cryptocurrency company BitGo from California to South Dakota has ignited a debate about the future of business in the Golden State. Triggered by a proposed wealth tax targeting residents worth over $1 billion, BitGo's move is part of a growing trend of companies and high-net-worth individuals reconsidering California as a base of operations.

Why it matters

The controversy surrounding BitGo's relocation touches upon broader concerns about the cryptocurrency industry's substantial energy demands and its potential impact on the environment. However, a growing number of crypto and data companies are actively pursuing renewable energy sources, which could become a key differentiator in attracting businesses and investors who prioritize environmental responsibility.

The details

Citing concerns over California's proposed 'Billionaire Tax Act,' which would impose a one-time 5% tax on those with fortunes exceeding $1 billion, BitGo CEO Mike Belshe publicly questioned the logic of starting a business in California under such conditions. This sentiment is echoed by other business leaders, as rising costs and increasing regulatory pressure in California are contributing to a broader trend of businesses seeking more favorable environments, such as South Dakota's lower taxes and less stringent regulations.

  • In February 2026, BitGo announced its relocation from California to South Dakota.
  • California's proposed 'Billionaire Tax Act' was introduced in early 2026.

The players

BitGo

A $1.75 billion cryptocurrency company that has relocated from California to South Dakota.

Mike Belshe

The CEO of BitGo, who publicly questioned the logic of starting a business in California under the proposed wealth tax conditions.

California's 'Billionaire Tax Act'

A proposed one-time 5% tax on residents with a net worth exceeding $1 billion, aimed at generating an estimated $100 billion primarily for healthcare.

South Dakota

The state that BitGo has relocated to, known for its lower taxes and less stringent regulations, which are attracting businesses seeking more favorable environments.

Oracle

A company that has already relocated from California.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

What’s next

The debate surrounding the proposed wealth tax and its impact on businesses in California is ongoing, with both proponents and critics closely watching the situation as it unfolds.

The takeaway

BitGo's relocation to South Dakota highlights the complex interplay between taxation, regulation, and economic development, as companies seek to balance their operational needs with the policy environment. This trend raises questions about the long-term implications for California's business landscape and the potential unintended consequences of tax policies aimed at the ultra-wealthy.