XNET
Xunlei Limited
stock NASDAQ ADR

AI Overview
Yes, it is highly likely Xunlei (XNET) will gradually sell or adjust its stake in Arashi Vision (Insta360) to avoid being classified as an investment company. Xunlei’s management has stated they are monitoring the situation and will adjust holdings to ensure investment securities do not exceed 45% of total assets. \[[1](https://www.barchart.com/story/news/2201417/xunlei-q1-earnings-call-highlights)\]
**The Core Issue**
Following Arashi Vision's highly successful IPO in June 2025, Xunlei's roughly 7.8% stake skyrocketed in value, making up a massive portion of the company's total assets. Under the **Investment Company Act of 1940**, if a company holds more than 40% of its total assets in investment securities, it faces the risk of being inadvertently classified as an investment company, which brings severe regulatory, structural, and operational restrictions. \[[1](https://seekingalpha.com/article/4910400-xunlei-limited-stock-may-be-getting-ready-for-a-move-higher), [2](https://www.investopedia.com/terms/i/investmentcompanyact.asp), [3](https://www.lexology.com/library/detail.aspx?g=82fa414a-48aa-4ea8-b873-ddbfd736fdde), [4](https://www.barchart.com/story/news/2201417/xunlei-q1-earnings-call-highlights)\]
**Current Timeline & Strategy**
**The Lock-Up:** Xunlei could not legally sell its pre-IPO shares immediately. However, the initial 12-month lock-up period on these shares expired in **June 2026**. \[[1](https://mispricedassets.substack.com/p/xnet-arashi-vision-stake-alone-is)\]
**Management's Plan:** Management has signaled that they are consulting advisors and will proactively manage their investments, indicating a willingness to gradually monetize or adjust these holdings. \[[1](https://www.barchart.com/story/news/2201417/xunlei-q1-earnings-call-highlights)\]
**Priorities:** Xunlei has explicitly stated they never intended to become an investment company and plan to focus on their core consumer-facing businesses. They are considering reinvesting in R&D, new business ventures, and rewarding shareholders. \[[1](https://www.marketbeat.com/instant-alerts/xunlei-q1-earnings-call-highlights-2026-05-28/), [2](https://www.reddit.com/r/ValueInvesting/comments/1rgfekq/xnet_too_good_to_be_true/)\]

AI Overview
Yes, it is highly likely Xunlei (XNET) will gradually sell or adjust its stake in Arashi Vision (Insta360) to avoid being classified as an investment company. Xunlei’s management has stated they are monitoring the situation and will adjust holdings to ensure investment securities do not exceed 45% of total assets. \[[1](https://www.barchart.com/story/news/2201417/xunlei-q1-earnings-call-highlights)\]
**The Core Issue**
Following Arashi Vision's highly successful IPO in June 2025, Xunlei's roughly 7.8% stake skyrocketed in value, making up a massive portion of the company's total assets. Under the **Investment Company Act of 1940**, if a company holds more than 40% of its total assets in investment securities, it faces the risk of being inadvertently classified as an investment company, which brings severe regulatory, structural, and operational restrictions. \[[1](https://seekingalpha.com/article/4910400-xunlei-limited-stock-may-be-getting-ready-for-a-move-higher), [2](https://www.investopedia.com/terms/i/investmentcompanyact.asp), [3](https://www.lexology.com/library/detail.aspx?g=82fa414a-48aa-4ea8-b873-ddbfd736fdde), [4](https://www.barchart.com/story/news/2201417/xunlei-q1-earnings-call-highlights)\]
**Current Timeline & Strategy**
**The Lock-Up:** Xunlei could not legally sell its pre-IPO shares immediately. However, the initial 12-month lock-up period on these shares expired in **June 2026**. \[[1](https://mispricedassets.substack.com/p/xnet-arashi-vision-stake-alone-is)\]
**Management's Plan:** Management has signaled that they are consulting advisors and will proactively manage their investments, indicating a willingness to gradually monetize or adjust these holdings. \[[1](https://www.barchart.com/story/news/2201417/xunlei-q1-earnings-call-highlights)\]
**Priorities:** Xunlei has explicitly stated they never intended to become an investment company and plan to focus on their core consumer-facing businesses. They are considering reinvesting in R&D, new business ventures, and rewarding shareholders. \[[1](https://www.marketbeat.com/instant-alerts/xunlei-q1-earnings-call-highlights-2026-05-28/), [2](https://www.reddit.com/r/ValueInvesting/comments/1rgfekq/xnet_too_good_to_be_true/)\]