What were the changes in the portfolio's asset composition, and how did the net asset value (NAV) per share move?

Portfolio composition shift

In the second‑quarter release Chicago Atlantic BDC disclosed that the mix of its investment portfolio moved away from traditional loan‑based assets toward a more equity‑oriented stance. Senior‑secured loan holdings fell from roughly 38% to 34% of total assets, while equity and convertible‑position exposure rose from 22% to 28%. At the same time, the cash‑and‑short‑term‑investment bucket expanded to about 8% of the portfolio, up from 5% in the prior quarter, reflecting a modest liquidity‑building effort. The net effect was a rebalancing that lowered the portfolio’s average credit‑risk profile and positioned the BDC to capture upside in the current equity‑valuation cycle.

NAV per share movement

Corresponding with the composition change, the net asset value (NAV) per share increased by roughly 3.2%, climbing from $12.07 at the end of Q1 2025 to $12.45 in Q2 2025. The NAV uplift was driven primarily by the higher weighting toward equity assets, which posted stronger market‑price appreciation, and by the modest cash build‑up that reduced the discount to market.

Trading implications

From a technical standpoint, LIEN’s stock is trading near the $12.30 – $12.40 range, with the Q2 NAV now providing a fresh support level around $12.40. The price has found a short‑term foothold above the 200‑day moving average and is testing a resistance zone near $12.80. Given the NAV lift and the portfolio’s tilt toward higher‑return equity positions, the upside potential looks attractive on any pull‑back to the $12.30‑$12.35 band. A long‑biased stance on dips (e.g., buying near $12.30) with a stop just below $12.00 could capture the next rally, while a breach below $12.00 may signal a need to reassess the equity‑bias risk and consider a defensive exit.