Coinbase Shifts Incorporation To Texas Following Tesla's Flight From Delaware

Benzinga

Coinbase is relocating its incorporation from Delaware to Texas, joining Tesla and SpaceX in rejecting Delaware’s legal system. The move follows court rulings voiding Elon Musk’s pay package and rising corporate frustration over unpredictable Chancery Court decisions.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Coinbase will move its state of incorporation from Delaware to Texas following a pass set

00:06by Tesla and SpaceX, according to CNBC. In a Wall Street Journal op-ed, Chief Legal Officer

00:11Paul Grewal said Delaware no longer offers consistent legal outcomes due to recent

00:15unpredictable chancery court rulings. Dropbox, TripAdvisor, and Anderson Horowitz are leaving

00:21Delaware after a chancery court ruling pointing Musk's 2018 pay package, leading them to encourage

00:26companies to move. Delaware has long dominated U.S. corporations for its flexible laws and

00:31expert courts. Texas now appeals to some companies because it allows limits on shareholder fiduciary

00:36duty lawsuits. Clay Mason and Anderson Horowitz made a Delaware lawsuit over 2021 share sales.

00:42CEO Brian Armstrong was a major donor to Trump's 2024 campaign.

00:45For all things money, visit Benzinga.com.

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