Former Ohio Treasurer Josh Mandel Loses $1.2 Million Betting on Bitcoin Options

Former Ohio State Treasurer Josh Mandel, once a crypto pioneer, has revealed a staggering $1.2 million loss after a risky Bitcoin options trade failed to deliver. Mandel had boldly predicted that Bitcoin would hit $444,000 by November 8, a forecast that has fallen far short of reality.

In a post on X (formerly Twitter), Mandel admitted to going “all in” on IBIT call options, which ultimately expired worthless. He explained that his earlier trades on MicroStrategy (MSTR) stocks and options were initially profitable, but impatience with his ambitious Bitcoin prediction led to his costly misstep. Mandel emphasized transparency in sharing his loss, denying any intent to mislead investors or profit from coin issuance.

Mandel gained national attention in 2018 when, as Ohio’s State Treasurer, he launched OhioCrypto.com, the first U.S. government platform allowing businesses to pay state taxes in Bitcoin. The initiative, processed through BitPay, converted crypto payments into U.S. dollars for the state treasury. At the time, Mandel described Bitcoin as “a legitimate form of currency,” positioning Ohio as a trailblazer in blockchain innovation. However, the program was later suspended in 2019 by his successor due to regulatory concerns, with fewer than ten companies having used it.

His recent loss underscores the high risks of crypto derivatives like Bitcoin ETF options, which have grown increasingly popular since their late 2024 debut. Despite strong early demand, Bitcoin ETFs have seen significant outflows, reflecting market volatility and investor caution. Mandel’s transparency serves as a cautionary tale for traders, reminding both professionals and retail investors that even seasoned crypto advocates can misjudge market timing.

As Bitcoin’s price swings continue and speculation persists, Mandel’s experience highlights the unpredictable nature of digital asset investments and the importance of managing risk in volatile markets.