Diginex Shares Retreat After Initial Brazil Deal Rally

A strategically significant framework agreement for a joint venture in Brazil failed to sustain investor enthusiasm for Diginex. Despite an initial pre-market surge, the company’s shares reversed course sharply during the regular trading session, succumbing to a powerful underlying downtrend and technical selling pressure.

Market Reaction Overshadows Strategic Announcement

The core of yesterday’s announcement was Diginex’s entry into the Brazilian decarbonization market through a framework agreement with BGlobal and the state of Mato Grosso. The planned joint venture aims to build a digital infrastructure for ESG reporting and decarbonization within the agricultural sector, starting with a pilot project for a “Digital Green Passport” in Mato Grosso’s beef industry.

The market potential underpinning the move is substantial. Brazil’s decarbonization market was valued at USD 43.1 billion in 2024, with projections pointing to growth to USD 76.8 billion by 2030, representing a compound annual growth rate of approximately 10.1%. Furthermore, the regional market for sustainability software is expected to more than double from USD 141.4 million to USD 341.4 million.

This news initially propelled Diginex’s share price upward by 32.59% in pre-market trading, reaching USD 1.79. However, this momentum proved fleeting. On the Nasdaq, the stock closed the regular session at roughly USD 1.26, a decline of about 6.7%. Similar losses were recorded on German trading venues like Tradegate, where shares ended near EUR 1.02.

Technical Weakness and Lock-Up Expiration Add Pressure

Market observers noted that the selling pressure, which overwhelmed the positive narrative, may have been exacerbated by the potential expiration of a lock-up agreement on Thursday. This event could have released additional shares into the market, diluting the impact of the Brazil deal announcement. The company’s release did not provide specific details on this matter.

From a chart perspective, the technical outlook remains bleak. The stock is trading significantly below its key moving averages, reportedly approximately 80% beneath its 100-day simple moving average. Prior to Friday’s session, the Relative Strength Index (RSI) hovered around 18, indicating a deeply oversold condition that helps explain the violent pre-market countermove. In the short term, the psychological zone around USD/EUR 1.00 is seen as a critical reference point for traders.

Should investors sell immediately? Or is it worth buying Diginex?

This recent volatility occurs within a pronounced longer-term downtrend. Since reaching an all-time high above EUR 35 in October 2025, Diginex’s equity has lost approximately 95% of its value.

Aggressive Expansion Amid Financial Losses

Concurrently with this price decline, the company has pursued an aggressive inorganic growth strategy. Recent steps include:
* The completion of the PlanA.earth acquisition on January 14, 2026, for about EUR 55 million, paid partly in stock.
* The acquisition of “The Remedy Project” in early January.
* The newly announced Brazil partnership.

The strategic goal is to build a comprehensive ESG platform integrating software solutions, consulting, and new geographic regions. This expansion stands in contrast to the company’s current financial performance. For the first six months of fiscal year 2026 (ending September 30, 2025), Diginex reported revenue of USD 2.0 million against an operating loss of USD 6.0 million. Consequently, the pressure to translate anticipated synergies and growth opportunities into tangible revenue increases remains intense.

Focus Shifts to Execution

Looking ahead, operational execution of the Brazil pilot project will move to the forefront. The speed at which the “Digital Green Passport” can be implemented and scaled within Mato Grosso’s beef sector will be crucial in determining whether the communicated market potential can be realized.

With the next full financial results not due until after the close of the current fiscal year, the near-term share price trajectory is likely to be shaped primarily by news flow related to the new Brazilian projects and the integration of the recently acquired PlanA.earth and The Remedy Project.