Josh Mandel’s Bitcoin Options Losses
Former Ohio Treasurer Josh Mandel, once seen as a strong advocate for Bitcoin, has revealed that he lost over $1.2 million on call options tied to BlackRock’s iShares Bitcoin Trust (IBIT).
This financial misstep came after he boldly predicted that Bitcoin would hit $444,000 by November 8, a forecast that, well, didn’t come to pass.
Mandel took to Twitter to discuss his experience with the failed investment, stating he had gone “all in” on an IBIT call option, only to see it expire without value.
“Early in the cycle, I exposed a portfolio of only MSTR and MSTR options. I was initially completely long, but as I predicted Bitcoin would hit $84,000, I sold an in-the-money covered call. Shifted short…These moves worked well enough, but I got impatient with the last call at $444,000. As the saying goes, you’re only as good as your last call.”
He clarified that his intention was to be “transparent” and rejected claims that he had misled investors or aimed to profit from the coin issuance.
Before Bitcoin speculation became mainstream, Mandel was a key figure in promoting cryptocurrency in Ohio. Back in November 2018, he established OhioCrypto.com, which was the first U.S. government platform allowing businesses to settle state taxes with Bitcoin. Payments via BitPay were converted to US dollars and sent directly to the Treasury.
At that time, he referred to Bitcoin as a “legitimate form of currency,” positioning Ohio as a frontrunner in blockchain innovation.
“We’re planting a flag for Ohio,” he told the media, asserting that this initiative would modernize state finances and draw in tech-savvy companies.
Unfortunately, the program encountered regulatory challenges under his successor, Treasury Secretary Robert Sprague, who halted it in 2019 over concerns that BitPay’s payment methods might breach state laws. Before its termination, fewer than ten businesses utilized the service.
Mandel’s hefty loss arrives amidst a rising interest in Bitcoin ETF options since their introduction in late 2024. As noted by Open Volume Research, the trading volume for Bitcoin ETF options surged, with many traders leaning towards bullish stances.
However, Bitcoin ETFs have struggled lately, with recent outflows comparable to those seen in May. Only recently did they experience their first inflow after enduring consecutive outflows of $2.9 billion.
Regardless, speculative long-term investments like Mandel’s exemplify the considerable risks of options and the inherent volatility of Bitcoin prices.
