AFC Gamma Shares: A Sustainable Rebound or Temporary Relief?

After a prolonged period of decline, shares of AFC Gamma finally closed the week with gains. However, this short-term upward movement appears fragile, as the company is undergoing a significant strategic transformation. The recent price recovery must be viewed in the context of this fundamental shift in corporate structure.

The root cause of heightened volatility and market uncertainty is a profound operational change. AFC Gamma has converted its legal status from a Real Estate Investment Trust (REIT) to a Business Development Company (BDC). This transition substantially alters the regulatory and tax framework for this commercial real estate lender.

A direct consequence of this change was the company's need to amend its credit agreements on January 13, 2026, as disclosed in a filing (Form 8-K) with the U.S. Securities and Exchange Commission (SEC). This administrative adjustment was required to align its financing facilities with the new parameters of a BDC structure. Investors are now assessing how this shift will impact the firm's balance sheet and cash flow generation over the long term.

Should investors sell immediately? Or is it worth buying AFC Gamma?

Technical Picture Remains Under Pressure

Despite the noticeable Friday advance, the medium-term chart outlook continues to show strain. Since December 26, 2025, the equity has shed approximately 18 percent of its value. The latest bounce from an intraday low of $2.35 is not yet being interpreted by analytical models as a definitive reversal; the overall assessment still signals considerable selling pressure.

The coming weeks will determine whether the stock can regain stability following its structural metamorphosis or if prevailing uncertainties will dominate. The price level around $2.35 remains a key short-term support zone for market participants to monitor.