Coinbase Opens Major San Francisco Office After Three Years Abandoning Its Headquarters
The move marks a major return for the cryptocurrency exchange as San Francisco seeks to revive its status as a leading tech hub.
Coinbase, the largest cryptocurrency exchange in the United States, has signed a lease for a major office space in San Francisco’s Mission Rock neighborhood, marking a surprise return three years after the company announced it was abandoning its “headquarters” model.
The new office, located at 1090 Dr. Maya Angelou Lane, spans 150,000 square feet, taking up more than half of Building B of the Mission Rock waterfront development co-developed by Tishman Speyer and the San Francisco Giants.
Coinbase’s High-profile Return
San Francisco Mayor Daniel Lurie welcomed the move on Twitter, calling it proof that San Francisco “remains a great place to build and thrive.” According to a report from The San Francisco Standard, this will be Coinbase’s largest single office to date.
In response, Coinbase CEO Brian Armstrong acknowledged that the city “has had a tough time over the years,” but also credited the new administration’s efforts to revitalize the city’s investment and tech scene.
Out and Back: Coinbase’s Three-Year Journey
Coinbase had announced it would close its 430 California Street office in 2022 as part of a “remote-first” strategy announced in February 2021. The company said its goal was to eliminate the concept of a “headquarters” to create a more flexible work environment for its nearly 3,800 global employees.
However, the return represents a shift in strategy that may reflect a growing need for in-person collaboration, especially as Coinbase becomes more prominent in the traditional financial markets.
The company previously paid $25 million to exit its old office lease early, according to a 2023 shareholder letter.
S&P 500 listing and new status
This May, Coinbase officially joined the S&P 500 index, replacing Discover Financial Services (DFS) – a major step that affirms the increasingly important role of the crypto industry in the traditional financial market.
Following the announcement, COIN shares on Nasdaq rose more than 8%, with the after-hours price reaching $225/share.
Taxes and costs in San Francisco
The return also raises concerns about the heavy tax environment in San Francisco – where businesses can pay up to 4% of revenue when combining existing business taxes.
Still, Brian Armstrong stressed, “We’ve never left California. A lot of our people live here. We go where the talent is.”
Coinbase’s 2024 10-K filing with the SEC shows it has $132.3 million in global lease obligations, with $9.9 million coming due in the next 12 months.