DeFi Technologies Shares Slide Despite Brazilian Market Entry

Investors sent shares of DeFi Technologies sharply lower, choosing to focus on internal governance issues and legal threats rather than a significant operational milestone. The company's aggressive push into South America failed to impress the market, with its stock declining 5.89% to USD 0.93.

The market's negative reaction was driven by a confluence of unsettling developments. Board member Stefan Hascoet resigned from his position with immediate effect. Simultaneously, management was compelled to address reported discrepancies in share holdings across different custody systems. An investigation involving 14 brokers concluded the inconsistencies were technical and related to reconciliation processes, but the news, combined with the board departure, created significant investor unease.

Further pressure stems from ongoing class-action lawsuits. Several law firms are currently examining allegations concerning misleading statements about the company's arbitrage strategy and revised revenue projections for 2025. These legal risks are currently dominating the fundamental assessment. While Morningstar's theoretical fair value estimate for the stock stands at USD 2.84, the high degree of uncertainty and looming deadlines for filing claims in January 2026 are dictating the near-term market direction.

Should investors sell immediately? Or is it worth buying DeFi Technologies?

Operational Milestone in Latin America Achieved

Operationally, the company advanced its business strategy. Its subsidiary, Valour, officially commenced trading on the B3 Exchange in São Paulo, marking its first listing outside of Europe. Through Brazilian Depositary Receipts (BDRs), investors in Brazil now have direct access to five crypto exchange-traded products (ETPs). These products track the performance of assets including Bitcoin, Ethereum, and Solana. This strategic move provides the company with an entry point to Latin America's largest digital assets market.

The divergence between the firm's operational progress and its stock performance highlights the current market sentiment. Internal changes and unresolved legal proceedings are outweighing the positive strategic development of tapping into a major new regional market.