Kalshi has entered talks to raise fresh capital at a valuation of about $40 billion, an 82% jump from the $22 billion valuation it secured less than two months ago.
Summary
- Kalshi is reportedly seeking new funding at a $40 billion valuation, up 82% from May.
- The company processed over $17 billion in monthly trading volume and recently expanded crypto perpetuals.
- Legal disputes with CME Group and several U.S. states continue as Kalshi grows its product lineup.
According to a Financial Times report citing people familiar with the discussions, Kalshi is seeking a new funding round that could value the prediction market operator at roughly $40 billion, with the financing potentially closing as early as the third quarter.
The proposed valuation would represent another sharp increase for the company, which was valued at $22 billion during a $1 billion funding round completed in May. Earlier in 2025, Kalshi carried a valuation of about $5 billion, while its December valuation stood at $11 billion before doubling in the latest raise.
Investors in the previous financing included Coatue, Sequoia Capital, Andreessen Horowitz, and Morgan Stanley. If completed, the new round would push Kalshi’s valuation to eight times the level recorded at the beginning of the year.
Trading growth has supported investor interest
Financial Times reported that Kalshi’s rapid expansion has been driven by rising activity across prediction markets tied to sports, politics, financial markets, and entertainment.
Company figures show that Kalshi processed more than $17 billion in trading volume last month, up from less than $5 billion during the same period a year earlier. During its May fundraising announcement, the company said annualized trading volume had reached $178 billion, more than three times the level recorded six months before.
Sports-related contracts remain the platform’s largest category, accounting for about 65% of total volume, according to company data. Multi-outcome combination contracts introduced last year have also become one of Kalshi’s fastest-growing products.
Recent product launches have extended the company’s reach beyond event markets. Earlier on June 24, Kalshi expanded its Commodity Futures Trading Commission-regulated crypto perpetual futures lineup by adding contracts tied to Zcash, Near Protocol, and Shiba Inu. The additions increased the number of supported digital assets to 13, with the contracts operating without expiration dates under a structure approved by the CFTC.
Legal disputes continue across multiple fronts
While pursuing new funding, Kalshi remains involved in several legal and regulatory battles linked to its products.
A recent dispute emerged after the company launched cryptocurrency perpetual futures following approval from the CFTC. CME Group subsequently sued the regulator, arguing that the products should be classified as swaps and subjected to a different regulatory review process.
Elsewhere, state-level challenges continue to target Kalshi’s event contracts. Arizona filed criminal charges against the company in March, alleging that it operated without a gambling license and offered prohibited election-related contracts.
Separately, a Massachusetts judge ordered Kalshi to stop offering sports-related contracts in the state unless it obtains a local gaming license.
Kalshi has contested those actions and maintains that its event contracts fall under the exclusive jurisdiction of the federal derivatives regulator. As the company seeks another major funding round, the ongoing court cases are unfolding alongside its push into new markets and the rapid growth of its trading business.
