Ryan Cohen: From Chewy to GameStop’s Bitcoin Bet

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Ryan Cohen has done it again—quietly, decisively, and without fanfare.

On a Tuesday in May 2025, buried within an SEC filing, a single Form 8-K from GameStop contained just four words: “Purchased 4,710 Bitcoin.”

The CEO who once rescued a dying video game retailer had just allocated over $500 million of corporate cash into Bitcoin. No press release. No investor call. Only the bare minimum disclosure required by law.

When David Bailey of BTC Inc. finally asked the question on everyone’s mind, Cohen’s response cut through months of speculation:
“Did GameStop buy Bitcoin?”
“We did. We currently hold 4,710 Bitcoin.”

That was it. With that move, Cohen positioned GameStop as the 14th-largest corporate holder of Bitcoin—an execution as smooth and confident as when he built Chewy from scratch and sold it for $3.35 billion.

For those who’ve followed his journey, this wasn’t surprising. This is the man whose involvement ignited millions of retail investors to take on Wall Street’s most established hedge funds. He transformed a company dismissed by experts into a force that defied traditional valuation models.

Cohen’s path—from a college dropout selling pet food online to a pioneer of modern corporate strategy—began with a Florida teenager who understood that the best opportunities hide where others aren’t looking.

The Early Apprentice Years

Ryan Cohen’s entrepreneurial education began long before he could legally drive.

Born in 1986 in Montreal to a teacher mother and a father, Ted Cohen, who ran a glassware import business, the family later moved to Coral Springs, Florida. By age 15, Ryan was already running his own ventures, earning referral fees from e-commerce sites.

At 16, he expanded into structured online operations, mastering the fundamentals of digital business while most still saw the internet as a passing trend.

His father became his most influential mentor—instilling values like delayed gratification, relentless work ethic, and treating business relationships as long-term partnerships rather than one-off transactions.

Eventually, Ryan made the bold decision to drop out of the University of Florida. He had already proven he could generate revenue and acquire customers. Staying in school felt like a detour from his true trajectory.

Revolutionizing Pet Care with Chewy

In 2011, Amazon dominated e-commerce, seemingly unbeatable in every category. Most entrepreneurs avoided direct competition with Jeff Bezos’ empire.

But 25-year-old Cohen chose a different path—not by out-matching Amazon in logistics or pricing, but by focusing on where customer relationships mattered more than operational efficiency: pet supplies.

Pet owners don’t just buy products—they care for family members. They seek empathy, advice, and support when their dog is sick or passes away.

Chewy was built on a simple idea: combine Amazon’s logistics with Zappos’ legendary customer service—and tailor it entirely for pet lovers. The company sold pet food online, but more importantly, it fostered emotional connections beyond transactions.

From day one, Chewy’s execution was meticulous and customer-first. Their support team didn’t just handle orders—they sent handwritten holiday cards, commissioned custom pet portraits for loyal customers, and even mailed flowers when a beloved pet passed away.

These gestures were costly and hard to scale—but they worked. Customers felt seen and valued.

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However, emotional bonds don’t pay bills. For the first two years, Cohen faced a challenge that would sink most startups: no investor wanted to back a pet food company going head-to-head with Amazon.

Overcoming 100 Rejections

Investor meetings became a grueling cycle of rejection.

Between 2011 and 2013, Cohen pitched over 100 venture capital firms on why pet supplies represented a massive opportunity for a customer-centric brand. Most saw only red flags: a college dropout with no formal business background trying to crack a niche market dominated by an invincible giant.

Finally, in 2013, Volition Capital broke ranks—investing $15 million in Chewy’s Series A round. This validation allowed Cohen to scale operations while preserving the company’s core culture.

By 2016, Chewy attracted major investors like BlackRock and T. Rowe Price. Annual sales hit $900 million.

Customer retention soared. Average order value climbed. Most importantly, users became vocal advocates—referring friends and family organically.

By 2018, Chewy hit $3.5 billion in annual revenue and prepared for IPO. Then came PetSmart’s offer: $3.35 billion to acquire the entire company—the largest e-commerce acquisition at the time.

At 31, Cohen became a multi-millionaire overnight. He could’ve retired, launched another venture, or become a full-time investor.

Instead, he walked away—to focus on family.

A Pause for Family and Reflection

In 2018, at the peak of his career, Ryan Cohen made a decision that baffled the business world.

He stepped down as Chewy’s CEO to support his pregnant wife and embrace fatherhood—fully exiting the company he’d spent seven years building. Financially free, he chose to invest his time in life’s most personal chapter.

He sold most of his Chewy shares and dedicated himself to being a husband and father. For someone driven by growth and competition since adolescence, this shift seemed abrupt—but Cohen embraced it fully.

Even during this break, he remained an active investor—holding significant stakes in Apple (becoming one of its largest individual shareholders), Wells Fargo, and other blue-chip companies.

Together with his wife Stephanie, he co-founded a family foundation supporting education and animal welfare causes.

This pause lasted three years. Then he found GameStop.

Seeing Value Where Others Saw Obsolescence

In September 2020, while most investors viewed GameStop as a relic—strangled by digital downloads and streaming—Cohen saw something else: a brand with deep cultural resonance and a fiercely loyal customer base, mismanaged but not broken.

Through his investment firm RC Ventures, Cohen disclosed a nearly 10% stake in the struggling retailer—making him its largest individual shareholder. Wall Street analysts were puzzled: why would someone of Cohen’s caliber bet on a “dying” retail chain?

Cohen’s perspective was characteristically contrarian. GameStop wasn’t just stores—it was a cultural hub for gamers. It had built relationships with passionate collectors who valued physical games, trading cards, and community experiences—people willing to pay premiums for what they loved.

The problem? Leadership treated it like a traditional retailer instead of a community-powered platform.

In January 2021, Cohen joined GameStop’s board—a move that triggered a retail investing frenzy. Fans of his Chewy success story piled in. Within two weeks, GameStop’s stock surged 1500%, creating one of the most famous short squeezes in market history.

While media focused on “meme stocks” and retail vs. hedge fund battles, Cohen focused on transformation.

Restructuring GameStop: Discipline Meets Vision

Cohen approached GameStop the way he built Chewy—with operational rigor and customer obsession.

When he took over, “the company was a mess—losing money hand over fist.”

First came leadership overhaul. Ten board members exited—replaced by executives from Amazon and Chewy who understood digital commerce. To compete online, you need people who’ve done it before.

Next: cost rationalization. Redundant roles were eliminated. Underperforming stores closed. Expensive consultants cut. But every customer-facing function remained intact. The goal? Profitability—even with lower revenue.

Here’s how the numbers shifted between 2020 (pre-Cohen) and 2024 (post-transformation):

Cohen inherited a company losing over $200 million annually despite $5B in revenue. In three years, he led GameStop to its first profit in five years—even after closing stores and shrinking revenue by 25%. He proved that smaller can be smarter—and far more profitable.

His bet? Digital transformation. Physical stores would remain—but only the strongest ones. GameStop’s future was online: serving gamers not just with software but collectibles, trading cards, merchandise—anything tied to gaming culture.

He also stockpiled cash and secured strategic investment authority. On September 28, 2023, he became CEO while retaining the chairman role—taking $0 salary, with compensation entirely tied to stock performance. His message: I only win if shareholders do.

Then came the crypto move.

From NFTs to Bitcoin: A Strategic Evolution

GameStop’s first foray into digital assets was cautious—and ultimately instructive.

In July 2022, the company launched an NFT marketplace focused on gaming collectibles. Initial results were promising: over $3.5 million in trading volume within 48 hours—proving demand existed.

But the NFT market collapsed swiftly. Digital asset sales plummeted from $77.4 million in 2022 to just $2.8 million in 2023. By November 2023, citing “regulatory uncertainty,” GameStop shut down its crypto wallet; by February 2024, NFT trading was discontinued.

Many would’ve abandoned crypto altogether. Not Cohen.

He learned from failure—and returned with a clearer strategy: Bitcoin.

The Bitcoin Play: A Calculated Reserve Move

On May 28, 2025—while markets watched the Fed—GameStop quietly purchased 4,710 Bitcoin for $513 million.

Cohen explained:

“If the thesis holds, Bitcoin—and gold—can serve as hedges against global currency devaluation and systemic risk. Compared to gold, Bitcoin has distinct advantages: portability, instant global transferability, verifiable authenticity via blockchain, easy storage in wallets—and fixed supply. Gold’s supply can still increase due to technological advances.”

This move made GameStop the 14th-largest corporate Bitcoin holder globally.

Crucially, the purchase was funded via convertible bonds, not core capital—leaving over $4 billion in cash reserves untouched. This wasn’t speculation; it was strategic diversification—treating Bitcoin as a reserve asset, not operational fuel.

“GameStop follows GameStop’s strategy,” Cohen said firmly. “We don’t follow anyone else’s.”

The stock dipped post-announcement. Cohen remained unfazed—he’s never optimized for quarterly reactions.

On June 25, GameStop exercised its greenshoe option, raising an additional $450 million—bringing total convertible bond issuance to **$2.7 billion**.

These funds are earmarked for “general corporate purposes and investments under GameStop’s investment policy”—which now explicitly includes Bitcoin as part of treasury reserves.

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The “Apes”: A New Kind of Shareholder Base

Perhaps the most unusual element of Cohen’s GameStop story is its army of retail investors—known as “apes.”

They don’t trade on earnings calls or analyst ratings. They hold because they believe in Cohen’s vision—and want to see what happens next.

This has created something rare in public markets: patient capital.

With this loyal base unlikely to sell during volatility, Cohen can execute long-term strategies without fear of short-term panic selling.

Frequently Asked Questions

Q: Why did GameStop buy Bitcoin instead of other cryptocurrencies?
A: Cohen views Bitcoin as digital gold—a scarce, decentralized store of value with growing institutional adoption. Unlike altcoins or NFTs, Bitcoin has proven resilience and clarity in its use case as a macro hedge.

Q: Is GameStop now more of an investment firm than a retailer?
A: No—its core remains retail and digital gaming services. Bitcoin is held as a treasury reserve asset, similar to how Tesla or MicroStrategy allocate capital—not as part of daily operations.

Q: How does funding via convertible bonds reduce risk?
A: It allows GameStop to raise capital without diluting existing shareholders immediately or touching operating cash—preserving liquidity while making strategic bets.

Q: What happens if Bitcoin price drops significantly?
A: While short-term paper losses may occur (the current cost basis is ~$108,837 per BTC vs ~$107,200 market price), Cohen’s focus is long-term value preservation—not quarterly mark-to-market gains.

Q: Can retail enthusiasm sustain through institutional transformation?
A: So far yes—the “apes” have stayed loyal through leadership changes and strategic pivots because they trust Cohen’s track record and vision for community-driven growth.

Q: Is Ryan Cohen’s zero-salary model common among CEOs?
A: Extremely rare—but used by vision-driven leaders like Elon Musk or Steve Jobs (in later years). It aligns CEO incentives perfectly with shareholder outcomes.

Ryan Cohen’s career thrives on spotting overlooked value: e-commerce at 15, pet care at 25, gaming culture at 35.

Each leap builds on the last—combining operational excellence with deep community understanding.

GameStop’s transformation may be his defining legacy—not for profits alone—but for proving that passionate communities can sustain models traditional finance can’t yet price.

At 39, Cohen sits at the intersection of retail reinvention and digital innovation—with billions in cash, proven discipline, and an army of believers behind him.

The formula seems clear: customer obsession + financial discipline + strategic patience + community trust = enduring value creation.

Whether this turns GameStop into something truly extraordinary remains to be seen—but watching Ryan Cohen try? That’s worth every second.

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