Former Ohio State Treasurer Josh Mandel, once hailed as an early political proponent of Bitcoin, has revealed a personal loss of more than $1.2 million on call options linked to BlackRock’s iShares Bitcoin Trust (IBIT).
The former state official’s bet followed his bold prediction that Bitcoin would reach $444,000 on November 8, a forecast that clearly has not materialized.
Mandel shared details of his failed trade in a post on X (Twitter), saying he had gone “all in” on IBIT call options, only to see them expire worthless.
“Early in the cycle, I published an options-only MSTR and MSTR portfolio. Initially, I was completely long, then switched to short with covered in-the-money call sales as I predicted Bitcoin would reach $84,000… These moves worked out quite well, but I became impatient with my final call of $444,000 and, as they say, you’re only as good as your last call,” he wrote.
Mandel added that his post was intended to “be transparent,” rejecting accusations that he misled investors or sought to make profits by issuing coins.
Long before retail Bitcoin speculation hit the American mainstream, Josh Mandel helped Ohio “plant a flag” for cryptocurrency adoption.
In November 2018, as State Treasurer, he launched OhioCrypto.com, the first US government platform allowing businesses to pay state taxes in Bitcoin. The payments, processed through BitPay, were automatically converted to US dollars for the state treasury.
At the time, Mandel described Bitcoin as “a legitimate form of currency” and positioned Ohio as a leader in blockchain innovation.
“We’re looking to plant a flag for Ohio,” he told reporters, arguing the move would modernize state finances and attract technology companies.
However, the program faced regulatory hurdles under his successor, Treasurer Robert Sprague, who suspended it in 2019 after determining that BitPay’s payment structure may have violated state procurement laws. Less than ten companies had used the service before its closure.
Mandel’s high-risk loss comes as interest in Bitcoin ETF options has increased since its launch in late 2024. As Kaiko’s research noted, trading volumes in Bitcoin ETF options skyrocketed with many traders favoring bullish positions.
However, Bitcoin ETFs have not been performing as well recently, with capital outflows reaching levels last seen in May. In fact, they only recently recorded the first capital inflow after a streak of outflows of $2.9 billion.
However, long-term speculative bets like Mandel’s remain atypical, highlighting the significant risks associated with options and Bitcoin price volatility.