TBH Stock Climbs On House Of Doge-Paxos Dogecoin Deal, But Reverse Split Muddies The Retail Sentiment

• Brag House Holdings rose more than 12% in morning trade after House of Doge announced a partnership with regulated infrastructure firm Paxos to expand global access to Dogecoin.
• The deal would integrate Dogecoin into Paxos' enterprise crypto brokerage and custody infrastructure for distribution across its client network, which powers crypto for platforms including PayPal, Venmo, Interactive Brokers, and Mercado Libre.
• The news landed the same day Brag House completed a 1-for-8 reverse stock split with one StockTwits user estimating the move left a thin free float which can amplify price swings.

Brag House Holdings (TBH) shares traded higher in morning trade on Monday after House of Doge announced it would partner with regulated blockchain infrastructure firm Paxos to expand Dogecoin's (DOGE) global access. 

Under the partnership, House of Doge, the commercial arm of the Dogecoin Foundation, along with its “merger partner" Brag House Holdings will bring Dogecoin into Paxos’ enterprise-grade crypto brokerage and custody infrastructure, and bring DOGE to Paxos’ client network for distribution. Paxos enables crypto solutions for platforms like PayPal (PYPL), Venmo, Interactive Brokers, and Mercado Libre.

"This partnership with Paxos represents a major step forward in accelerating global access for Dogecoin," House of Doge CEO Marco Margiotta said in the announcement.

Paxos, which is licensed by the Office of the Comptroller of the Currency (OCC) to conduct virtual currency business activity and runs regulated entities in the U.S., Singapore, and Europe, would be responsible for custody, liquidity, and compliance, with partners providing buying, selling, holding, and sending digital assets. "We are thrilled to support the availability of Dogecoin on our platform," said Nick Robnett, Head of Crypto Business at Paxos.

TBH’s stock was up more than 12% intraday, at around $5.1. On Stocktwits, retail sentiment around TBH dropped to the ‘neutral’ zone from the ‘bullish’ zone over the past day, with chatter staying at ‘low’ from ‘normal’ levels. 

Despite the news, Dogecoin itself did not rally, with DOGE’s price down around 1.8% on the day. On Stocktwits, retail sentiment around DOGE remained in the ‘bearish’ zone, while chatter stayed at ‘low’ levels over the past day.

Retail Traders Stay Wary

The partnership came on the same day that it completed a 1-for-8 reverse stock split, effective Monday, that reduced the number of its total outstanding shares. The split also changed the company’s CUSIP number, according to a corporate-actions alert from Nasdaq (NSDQ). 

The reverse split mechanically pushed the share price up, so Monday's quoted gain is a function of trading against the split-adjusted prior close, not the consolidation itself. The split to estimate the company’s free float to be around 2.65 million shares, about 87.5%, a very thin tradable supply that, if correct, could help cause more dramatic price swings.

One StockTwits user pointed out the importance of the consolidation, noting that the 1-for-8 reverse split would bring TBH’s total outstanding shares from 27 million to roughly 3 million.

However, some users said they remain bullish on the stock.

The company stated that the reason for the move was to stay listed on Nasdaq. Reverse stock splits are generally seen as a bearish signal and are usually done to support share price that has gone too low, to meet exchange listing rules like Nasdaq's $1.00 minimum bid requirement.

Read also: Tom Lee Says Crypto Investors Are 'Rage Quitting' After Mark Cuban Dumped All His Bitcoin

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