DeFi Technologies Targets Brazilian Market in Strategic Expansion Push

Following a volatile year for its shares, which saw a decline of approximately 55 percent, DeFi Technologies is embarking on an aggressive growth strategy. The company has formally launched on the São Paulo exchange, aiming to capture a significant share of one of the world's largest cryptocurrency markets. This pivotal move raises the question of whether it can restore investor confidence and move beyond recent instability.

Despite the weakness in its share price, the company's financial position shows underlying strength. For the first nine months of 2025, revenue reached $80 million, a notable increase from $51.3 million in the same period the prior year. Furthermore, DeFi Technologies holds a liquidity reserve of roughly $165.7 million in cash and digital assets. These resources are deemed critical for funding its expansion while managing internal pressures.

However, this growth initiative is unfolding against a backdrop of uncertainty. Beyond a leadership change in November that saw Johan Wattenström assume the CEO role, ongoing class-action lawsuits are creating headwinds. Investors have alleged that management made misleading statements concerning the "DeFi Alpha" arbitrage strategy and revenue forecasts. These factors recently led analysts at Benchmark to slash their price target dramatically from $8 to $3, though they maintained their buy recommendation.

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

Establishing a Foothold in a Key Region

The company achieved a major milestone in its internationalization plan this past Friday. By introducing Brazilian Depositary Receipts (BDRs) on the B3 Exchange, institutional investors in Brazil now gain direct access to DeFi shares in their local currency, eliminating the need to route orders through international trading venues.

Concurrently, its subsidiary Valour is launching five digital Exchange Traded Products (ETPs) tracking assets including Bitcoin, Ethereum, and Solana. CEO Johan Wattenström frames this as a logical strategic step. Brazil ranks fifth globally in crypto adoption and is considered Latin America's most crucial hub for digital assets. An estimated $319 billion in cryptocurrency value flowed into the country between July 2024 and June 2025 alone.

The foray into Latin America presents a tangible opportunity to diversify the revenue base beyond Europe and capitalize on the regional crypto boom. Whether this proves sufficient to offset legal challenges and rebuild lost market trust will depend significantly on the actual demand for the new ETPs and BDRs in the coming quarters.