This object has been dismissed as a LED kite, but these new videos make that less clear. For one thing, wind velocities were low over Sao Paolo on July 23. Were they high enough to keep a large rotating kite fitted with lights and batteries aloft? Unfortunately, without knowing the weight of the kite, it’s impossible to be certain. Perhaps somebody will come forward with a definitive explanation. However, it never carries out any manuevers that couldn’t be done by a kite, so, until proven otherwise, this will continue to be our assumption here.

http://www.youtube.com/watch?v=kniSoqJXJSU
Story Source:
http://www.youtube.com/watch?v=kniSoqJXJSU