Arlington Capital Adds Data Center Company Iren With 76,000 Share Buy

Arlington Capital Management, Inc. initiated a new position in Iren Limited, acquiring 76,117 shares valued at approximately $3.6 million, according to its Nov. 14, SEC filing.

• Acquired 76,117 shares in IREN Limited, with an estimated $3.6 million position increase
• Transaction represents a new position accounting for 2.3% of the fund’s 13F reportable assets under management
• The position is outside the fund's top five holdings

What happened

Arlington Capital Management, Inc. disclosed a new stake in Iren Limited (NASDAQ:IREN), purchasing 76,117 shares during the third quarter of 2025. The position, valued at approximately $3.6 million, was revealed in a Form 13-F filed with the Securities and Exchange Commission on Nov. 14 (see filing). This move brings the total number of reportable positions in the fund to 103.

What else to know

• This is a new position for the fund, representing 2.3% of its 13F reportable assets under management
• Top holdings after the filing:
  • NYSEMKT: IAU: $14,369,158 (9.2% of AUM)
  • NYSEMKT: SH: $12,257,193 (7.8% of AUM)
  • NASDAQ: TLT: $8,741,816 (5.6% of AUM)
  • NASDAQ: NVDA: $7,838,795 (5.0% of AUM)
  • NYSEMKT: GDX: $5,423,611 (3.5% of AUM)
• As of Nov. 14, shares of Iren were priced at $46.37, up 348.9% over the past year, outperforming the S&P 500's total return by 334.2 percentage points

Company Overview

Company snapshot

IREN Limited is a Sydney-based company specializing in the ownership and operation of data centers and computing infrastructure, primarily for Bitcoin mining. The company integrates hardware and electrical infrastructure.

It's also positioned the company to provide AI Cloud Services, delivering large-scale GPU clusters for AI training and inference.

Foolish take

Iren's stock price had a strong gain in the third quarter. However, it has given back some of its gains following the company's quarterly earnings release.

Its fiscal first quarter revenue more than quadrupled from the prior year to $240.3 million. This covered the period that ended on Sept. 30. While the company produces revenue from AI cloud services, the bulk currently comes from Bitcoin mining. That leaped from $49.6 million to $239.4 million.

AI cloud service revenue more than doubled from $3.2 million to $7.3 million. However, management has been pivoting the business, and it has targeted $3.4 billion in annualized revenue by the end of this year. There have been positive developments, including a $9.7 billion contract with Microsoft (NASDAQ: MSFT).

However, it's challenging to decipher Iren's bottom line. It reported a $384.6 million profit under generally accepted accounting principles, but this includes certain non-operating items, such as a $665 million unrealized gain on financial instruments.

Investors have been questioning whether AI infrastructure companies' stock prices have gotten ahead of themselves, and that likely played a role in Iren's price drop. It'll be interesting to see Arlington Capital's commitment from its next quarterly SEC filing.

Glossary

Initiated a new position: When an investor buys a stock for the first time, establishing a new holding in their portfolio.
13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC using Form 13F.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Top holdings: The largest investments in a fund's portfolio, usually ranked by value or percentage of AUM.
Form 13-F: A quarterly SEC filing required from institutional investment managers to disclose their equity holdings.
Vertically integrated: A company structure where multiple stages of production or service are controlled by the same organization.
Data centers: Facilities housing computer systems and infrastructure for storing, processing, and managing data.
Bitcoin mining: The process of using computing power to validate Bitcoin transactions and earn new Bitcoin as a reward.
Infrastructure services: Support services related to the physical and technical systems needed for operations, such as power and networking.
Stake: The amount of ownership or shares an investor holds in a company.
Outperforming the S&P 500: Achieving a higher return than the S&P 500 index over a specific period.
TTM: The 12-month period ending with the most recent quarterly report.

Lawrence Rothman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.