As a project, Mastodon has operated under the umbrella of Mastodon GmbH, a German company that benefited from non-profit status with the German government. Despite all indications that they were doing everything right, Mastodon GmbH recently had its non-profit status revoked, resulting in the team to seek an alternative.
In the announcement, CEO and founder Eugen Rochko had this to say:
Our day to day operations are largely unaffected by this event, since Patreon does not presuppose non-profit status, and Patreon income does not count as donations. We have in fact not had to issue a single donation receipt since 2021.
Mastodon remains one of the only popular social platforms that operates out of the European Union, and Eugen desires to keep things that way. With that being said, this could be an interesting opportunity for the project: a presence in the United States may reduce friction in hiring employees there.
Fair. That was overgeneralizing German bureaucracy to the entire EU.
But I think the point that tech companies in Europe rarely survive still stands.