Man Who Once Let Ohio Pay Taxes in Crypto Just Lost $1.2 Million on Bitcoin Options
Former Ohio State Treasurer Josh Mandel, as soon as hailed as an early political champion of Bitcoin, has revealed a private lack of greater than $1.2 million on name choices tied to BlackRock’s iShares Bitcoin Trust (IBIT).
The former state official’s gamble adopted his daring prediction that Bitcoin would attain $444,000 by November 8, a forecast that has clearly not materialized.
Ohio’s Crypto Tax Pioneer Loses $1.2 Million Betting on Bitcoin Options
Mandel shared particulars of his failed commerce in a submit on X (Twitter), saying he had gone “all in” on IBIT call options, solely to observe them expire nugatory.
“Earlier in the cycle, I printed a MSTR and MSTR-option-only portfolio. Initially, it was completely lengthy, then shifted to quick with in-the-money lined name gross sales as I predicted Bitcoin would hit $84,000…These strikes labored out effectively sufficient, however I grew impatient with my last name for $444,000, and as they are saying, you’re solely nearly as good as your final name,” he wrote.
Mandel added that his submit was meant “to be clear,” rejecting accusations that he misled buyers or sought to revenue by coin issuance.
Long earlier than retail Bitcoin hypothesis reached mainstream America, Josh Mandel helped Ohio “plant a flag” for crypto adoption.
In November 2018, as State Treasurer, he launched OhioCrypto.com, the primary US authorities platform permitting companies to pay state taxes in Bitcoin. The funds, processed through BitPay, have been robotically transformed into US {dollars} for the state treasury.
At the time, Mandel described Bitcoin as “a reputable type of foreign money” and positioned Ohio as a pacesetter in blockchain innovation.
“We’re seeking to plant a flag for Ohio,” he told reporters, arguing that the transfer would modernize state funds and entice tech-forward companies.
The program, nevertheless, confronted regulatory hurdles underneath his successor, Treasurer Robert Sprague, who suspended it in 2019 after figuring out that BitPay’s cost construction might have violated state procurement legal guidelines. Fewer than ten corporations had used the service earlier than it was shut down.
Risks and Lessons From the Bitcoin ETF Options Market
Mandel’s high-stakes loss comes as curiosity in Bitcoin ETF options has surged since their launch in late 2024. As Kaiko analysis noted, buying and selling volumes in Bitcoin ETF choices soared, with many merchants favoring bullish positions.
Recently, nevertheless, Bitcoin ETFs have not been performing as well, with outflows reaching ranges final seen in May. In reality, they solely lately recorded the primary influx after a $2.9 billion outflow streak.
Nonetheless, speculative long-term bets like Mandel’s stay outliers, highlighting the numerous dangers related to choices and the volatility of Bitcoin prices.
By making his funding loss public, Mandel provides a reminder that skilled public figures and crypto pioneers may misjudge timing or threat in digital property.
As regulated crypto derivatives increase and entice extra buyers, Mandel’s expertise demonstrates that market predictions, even when broadly shared, include no assure of success.
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