CoinFlip, a fast-growing Chicago-based Bitcoin ATM operator, is relocating its headquarters from West Town and moving into the massive redevelopment this fall, doubling its space to 44,000 square feet in a 12-year lease.
Beyond the amenities offered by the Old Post Office, the 6-year-old cryptocurrency company was incentivized by the state to make a long-term commitment to staying in Chicago. CoinFlip, which has 194 employees, agreed to add at least 30 employees by the end of next year and make $17 million in capital investments in return for nearly $1.7 million in Illinois economic tax credits.
“We chose the Old Post Office because we thought it was a great place to attract top tech talent,” said Deerfield native Ben Weiss, 26, CEO of CoinFlip. “I think that we’re building a great crypto community in Chicago.”
CoinFlip, which operates 2,700 Bitcoin ATMs across the country, is projected to handle more than $1.5 billion in cryptocurrency transactions this year. The company generated $50 million in revenue from transaction fees last year, a number that is projected to double in 2021, Weiss said.
Illinois is looking to attract and retain businesses operating in the booming cryptocurrency industry. Legislators are weighing a bill that would create a special purpose depository trust for digital assets as part of building a broader cryptocurrency ecosystem. The state is home to 58 blockchain and cryptocurrency companies.
“We are … working to build a cryptocurrency regulatory framework that’s best in the nation,” Gov. J.B. Pritzker said at a news conference Tuesday announcing the CoinFlip move to the Old Post Office. “And so we are, frankly, open for business for everyone that wants to be in this industry.”
Founded in 2015, CoinFlip has carved a niche in the cryptocurrency industry through its network of ATMs, which change cash into bitcoin, selling over $5 million in digital assets per day across 47 states. The average transaction is several hundred dollars, buying a fractional amount of a bitcoin, currently valued at nearly $50,000.
CoinFlip jobs range from customer support to field operations, but many of the new hires will be focused on technology as the company expands its cryptocurrency transaction capabilities, Weiss said. Employees are currently working on a flexible schedule, allowing them to choose between remote and in-office work during the pandemic.
“We have been letting employees do what they feel most comfortable,” Weiss said. “Most people come in at least three times a week.”
The company will retain its current space near the United Center as a warehouse for assembling the ATM units, but the rest of the office will relocate to the Old Post Office by October or November, Weiss said.
By committing to job creation and capital investment, CoinFlip qualified for the Illinois Economic Development for a Growing Economy program, better known as EDGE. In addition to adding at least 30 new jobs and making $17 million in capital investments, CoinFlip must retain at least 138 jobs currently held in the Chicago office to get the full $1.68 million in tax credits, which are processed on an annual basis for up to 10 years, department spokeswoman Lauren Huffman said.
The conversion of the long-vacant Old Post Office into modern offices has attracted tenants such as Uber, Walgreens, PepsiCo, Ferrara Candy and most recently, tech firm Cisco Systems, which is relocating its Midwest headquarters from Rosemont.
Completed in 1921 and greatly expanded in 1932, the massive post office has long loomed over the Eisenhower Expressway as a gateway to downtown Chicago. After sitting vacant for nearly two decades, New York developer 601W Cos. undertook an $800 million renovation of the Old Post Office, creating 2.5 million square feet of office and event space. The repurposed building reopened in fall 2019.
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