Ryan Cohen: From Chewy to GameStop

Cohen has turned GameStop into the fourteenth company in terms of Bitcoin holdings, and its efficiency is no less than the easy and efficient manner he exhibited when he acquired Chewy from scratch for $3.35 billion.

Written by: Thejaswini M A

Compiled by: Block unicorn

Introduction

Ryan Cohen did it again. He acted quietly, without explanation, and without seeking permission.

On a Tuesday in May 2025, an SEC filing included a GameStop 8-K form, which contained only four words: "Acquired 4710 Bitcoins."

The CEO who brought a nearly bankrupt video game retailer back on track has just invested over $500 million of the company's cash into Bitcoin. No press conference. No investor conference call. Just the minimum legal disclosures required.

When David Bailey of BTC Inc finally faced the question everyone was concerned about, Cohen's answer shattered months of speculation.

"Did GameStop acquire Bitcoin?"

"We bought. We currently hold 4710 Bitcoins."

That's it. Cohen turned GameStop into the fourteenth company in terms of Bitcoin holdings, with an efficiency that is no less than the easy and efficient way he showcased when he acquired Chewy from scratch for $3.35 billion.

For those who have been following him, this step comes as no surprise. It was this person's involvement that encouraged millions of retail investors to short some of Wall Street's most established hedge funds. He turned a company that experts believed was destined to fail into an entity that disrupts all traditional valuation models.

Cohen's journey, from a college dropout selling pet food online to becoming a creator of new business strategies, began with a Florida teenager who understood that the best opportunities are hidden in places that everyone else overlooks.

The Start of the Apprentice

Ryan Cohen's entrepreneurial education began long before legal driving.

Cohen was born in 1986 in Montreal, his mother was a teacher, and his father, Ted Cohen, ran a glassware import company. When he was young, the family moved to Coral Springs, Florida. At the age of 15, Cohen had already started his own business, earning referral fees from various e-commerce websites.

By the age of 16, he expanded into more structured e-commerce operations, learning the fundamentals of online business, at a time when most people still thought the internet was just a passing fad.

His father Ted became his most important mentor, teaching him the importance of delayed gratification, work ethic, and viewing business relationships as long-term partnerships rather than one-time transactions.

Ryan decided to drop out of the University of Florida and fully devote himself to his business venture. He has proven that he can generate income and acquire customers. Attending college made him feel like he was deviating from his original career path.

Pet Food Revolution

In 2011, the e-commerce sector was dominated by Amazon, which seemed unbeatable in every field. Most entrepreneurs avoided direct competition with Jeff Bezos's empire.

But 25-year-old Cohen decided to fight back by not competing directly.

He did not try to beat Amazon in product selection or logistics, but chose an area where customer relationships are more important than operational efficiency: pet supplies. Pet owners care about family, not just purchasing products. They need advice, empathy, and someone who understands that a sick dog is not just an inconvenience, but a crisis.

Chewy was founded on a simple idea: to combine Amazon's logistics with Zappos' customer service philosophy, and then tailor it specifically for pet owners. The company sells pet supplies online, but more importantly, it aims to build a connection with customers that goes beyond individual transactions.

The early execution was orderly and customer-centric. Chewy's customer service team not only handles orders; they also send handwritten holiday cards, create custom pet portraits for loyal customers, and send flowers when a beloved pet passes away. These gestures are costly and difficult to scale. Here is a tweet that sparked heated discussions:

But building emotional connections cannot pay the bills. In the first two years, Cohen faced a problem sufficient to kill most startups: no one was willing to invest in a pet food company competing with Amazon.

Hundred Rejections

The investment meeting has turned into a kind of entrepreneurial torment.

Between 2011 and 2013, Cohen contacted over 100 venture capital firms to explain why pet supplies represented a huge opportunity for a customer-centric company. What most VCs saw was: a college dropout without traditional business credentials trying to make a mark in a small market dominated by invincible competitors.

In 2013, Volition Capital finally brought a breakthrough: a $15 million Series A funding. This recognition allowed Cohen to expand Chewy's operations while maintaining its customer-centric culture. By 2016, the company attracted additional investments from BlackRock and T. Rowe Price, with annual sales reaching $900 million.

Chewy has a very high customer retention rate, with average order value continuously increasing. Most importantly, customers have become brand advocates, recommending this service to other pet owners.

By 2018, Chewy's annual revenue reached $3.5 billion and was preparing for an initial public offering. At that time, PetSmart made an acquisition offer: to acquire the entire company for $3.35 billion, which was the largest e-commerce acquisition in history at that time.

At 31 years old, Cohen's net worth has reached hundreds of millions of dollars. He could have chosen to retire, invest in startups, or start new companies in other industries.

However, he chose to leave Chewy to focus on his family.

Family Interlude

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

He resigned from his position as CEO of Chewy to be with his pregnant wife and prepare for the life of being a father, completely stepping away from the company he built over seven years. Cohen achieved financial freedom, and he decided to use that freedom to experience the most important moments in his personal life.

He sold most of his Chewy shares to focus on being a husband and father. For someone who has been focused on growth and competition since his teenage years, the shift to family life might feel abrupt. However, Cohen has fully embraced this change.

Even during this family-centered period, he remains an active investor. His portfolio includes Apple (he holds 1.55 million shares, making him one of the largest individual shareholders), Wells Fargo, and other blue-chip companies.

The family foundation he co-founded with his wife Stephanie supports education, animal welfare, and other charitable causes.

This break lasted for three years. Then, he discovered GameStop.

GameStop's Strategy

September 2020. While most investors viewed GameStop as a brick-and-mortar retailer suffocated by digital downloads and streaming services, Ryan Cohen saw something different: a company with strong brand recognition and a loyal customer base, but whose management did not know how to leverage those assets.

Cohen's investment firm RC Ventures disclosed that he holds nearly 10% of the shares in the struggling video game retailer, making him the largest individual shareholder of the company. This move has left Wall Street analysts puzzled, as they cannot understand why someone with Cohen's extensive experience would invest in an "outdated" retail business.

Cohen's perspective is as consistently counter-traditional as ever. GameStop is not just a retail chain; it is a cultural icon of the gaming community. The company has built relationships with customers who deeply love gaming culture, collectibles, and the social experiences of video games. These passionate enthusiasts are willing to pay a premium for products related to their interests.

The problem is that the management views the company as a traditional retailer, rather than a community-driven platform.

In January 2021, Cohen joined the GameStop board, and this news triggered a buying frenzy among retail investors who recognized Cohen from the success story of Chewy. Within two weeks, GameStop's stock price soared by 1500%, creating one of the most famous short squeeze events in market history.

When financial media focus on the phenomenon of "meme stocks" and the game between retail investors and hedge funds, Cohen focuses on more fundamental changes.

Transformation

Cohen rebuilt GameStop in the way he built Chewy.

When he took over, "the company was in a mess, suffering significant losses."

He first reformed the leadership team with bold and decisive changes. Ten board members left, replaced by executives from Amazon and Chewy who truly understand e-commerce. If you want to compete in the digital space, you need experienced talent.

Next is cost reduction. Cohen eliminated all inefficiencies: redundant positions, underperforming stores, and expensive consulting fees, while retaining all parts that are closely related to customers. The goal is to maintain profitability even if sales decline.

Let's take a look at the data: a comparison between 2020 (before Cohen joined) and 2024 (after Cohen joined).

Revenue and profitability:

• Revenue: 5.1 billion USD (2020) → 3.8 billion USD (2024) = a decrease of 25%
• Gross profit: $1.26 billion (2020) → $1.11 billion (2024) = Remains stable despite revenue decline
• Gross Margin: 24.7% (2020) → 29.1% (2024) = Increase of 440 basis points

Operational Performance:

• Operating Revenue (EBIT): -$237.8 million loss (2020) → -$26.2 million loss (2024) = Improvement of 89%
• EBITDA: -254.7 million USD (2020) → -16.5 million USD (2024) = Improvement of 93%
• Net Profit (PAT): -215.3 million USD loss (2020) → 131.3 million USD profit (2024) = 346.6 million USD turnaround

Cohen took over a company with an annual revenue of $5.1 billion but an annual loss of over $200 million. After three years of systematic restructuring, he led GameStop to achieve its first profit in the past five years in 2023-2024. Despite a 25% reduction in revenue from closing stores, he increased the gross margin by 440 basis points, turning an annual loss of $215 million into a profit of $131 million—this proves that smaller companies can also generate significant profits.

His bet is on digital transformation. Physical stores will continue to exist, but only the highest quality stores will survive. GameStop's future lies online, serving not only gamers looking for video games but also providing collectibles, trading cards, merchandise, and anything related to gaming culture. Cohen has also hoarded cash and obtained the authority to make strategic investments. On September 28, 2023, he became the CEO while retaining the chairman position. His salary: zero. His compensation is entirely tied to the stock price, meaning he only gets rewarded if shareholders make money.

Next is the stake in cryptocurrency.

GameStop's first foray into digital assets reflects the potential and risks of emerging technology adoption.

In July 2022, the company launched an NFT marketplace focused on game-related digital collectibles. The initial results seem optimistic: the trading volume exceeded $3.5 million within the first 48 hours of going live, indicating that there is indeed a demand for game NFTs.

But the collapse of the NFT market was rapid and brutal. Sales of digital assets plummeted from $77.4 million in 2022 to $2.8 million in 2023. GameStop halted its crypto wallet services in November 2023, citing "regulatory uncertainty in the crypto space," and shut down its NFT trading features in February 2024.

This failure could have completely ended GameStop's attempts in the cryptocurrency field. However, Cohen learned from it and developed a more mature digital asset strategy.

Bitcoin's bet

May 28, 2025. While the market focuses on Federal Reserve policies, GameStop quietly acquired 4710 Bitcoins for $513 million.

Cohen's reasoning is as typical as ever:

"If this argument is correct, then Bitcoin and gold can serve as tools to hedge against global currency devaluation and systemic risks. Compared to gold, Bitcoin has some unique advantages—portability, as it can be transferred globally instantly, while gold is bulky and has high transportation costs. The authenticity of Bitcoin can be verified instantly through the blockchain. You can easily store Bitcoin in a wallet, whereas gold requires insurance and is expensive. Furthermore, Bitcoin also has scarcity—its supply is fixed, while the supply of gold remains uncertain due to certain technological advancements."

This move makes GameStop the 14th largest corporate Bitcoin holder.

The company is funding its Bitcoin purchases through convertible bonds rather than core capital, while still maintaining a sufficient cash reserve of over $4 billion. This strategy reflects diversification and prudence, rather than a gamble—positioning Bitcoin as a supplementary investment rather than a core business necessity.

"GameStop follows its own strategy. We do not follow anyone else's strategy."

After the announcement, the stock price fell. Cohen doesn't seem to care. He has never optimized for quarterly reactions.

On June 25, GameStop raised an additional $450 million by exercising its over-allotment option, bringing the total amount of its convertible bond issuance to $2.7 billion.

The overallotment option (or green shoe option) is a provision in the issuance agreement that allows underwriters to sell up to an additional 15% of shares when demand is strong. Exercising this option gives the company the opportunity to raise more funds while helping to stabilize the stock price after issuance. In the case of GameStop, this means issuing more convertible bonds to increase total funding.

These funds will be used for "general corporate purposes and investments in accordance with GameStop's investment policy," which explicitly includes holding Bitcoin as a reserve asset.

Cohen has a "Meme Army." The most unusual part of Cohen's GameStop story is the millions of retail investors who refused to sell.

They call themselves "monkeys" and do not behave like ordinary shareholders. They do not trade based on financial reports or analyst ratings. They hold stocks because they believe in Cohen's vision and want to see what happens next.

This has created a nearly unheard-of "patient capital" in the public market. Cohen can focus on long-term strategies without worrying about quarterly fluctuations, as his core group of investors will not leave easily.

Our Opinion

Will Bitcoin create value for GameStop shareholders, or will the volatility of cryptocurrency erase any gains? Cohen's cautious attitude indicates that he understands the risks, but the future of Bitcoin is unpredictable.

GameStop acquired 4,710 Bitcoins at an average price of $108,837, while the current trading price of Bitcoin is close to $107,200. This position is almost at break-even with the original cost, highlighting that the future of Bitcoin remains difficult to predict.

Can the army of retail investors driving GameStop's transformation maintain their enthusiasm as the company becomes more traditional? Balancing the execution of institutional strategies with keeping frontline employees engaged is a skill mastered by only a few CEOs.

How will traditional investors evaluate a company that is half retail and half investment tool? GameStop's hybrid model may create valuation issues and limit the acquisition of certain types of capital.

Ryan Cohen's career has been built on discovering opportunities that others overlook. At 15, he saw the potential of e-commerce. By 25, he identified pet supplies as a blind spot for Amazon. At 35, he recognized that the community around GameStop was more valuable than its stores.

Each step builds on the previous one while expanding into new areas. GameStop's transformation may be his most significant achievement, not because of financial returns, but because it demonstrates that a focused community can support business models that traditional finance cannot understand.

Cohen indicated that customer focus, operational discipline, and strategic patience can create value in unexpected places. Properly incentivized retail investors can provide patient capital for long-term thinking. Companies can transcend their original business models while maintaining their core identity.

At 39, Cohen boasts billions in cash, has an outstanding track record, and occupies a unique position at the intersection of retail and digital innovation. This college dropout, who learned customer service from pet owners, may have found the formula for building a lasting business: combining operational excellence with community engagement while maintaining financial discipline and remaining open to new opportunities.

Whether this formula can transform GameStop into an extraordinary existence remains to be seen. However, watching Cohen tackle these challenges will be worthwhile.