Prediction‑market operator Kalshi announced a fresh $1 billion financing round that pushes its private‑market valuation to $40 billion, according to Reuters and Bitcoin.com. The round was co‑led by Sequoia Capital and Wellington Management, with participation from Tiger Global Management and Dragoneer Investment Group. The valuation marks an 82% rise from the $22 billion price tag disclosed in May, and follows a similar $1 billion raise five months earlier.

Growth strategy and new product roadmap

Kalshi intends to use the capital to broaden its product suite beyond the event‑contract model that underpins its prediction market. Unchained reports that the company will develop single‑stock perpetual futures, leveraged versions of existing contracts and a market for trading compute‑price indices. The firm already launched crypto perpetuals in May after receiving CFTC approval, later adding equity‑index and metal contracts. By expanding into these assets, Kalshi aims to compete more directly with traditional derivatives exchanges such as CME Group and Intercontinental Exchange, as noted by Bitcoin.com.

Kalshi’s institutional business has accelerated, with the platform counting roughly 500 institutional clients in September, representing about a quarter of its trading volume when market makers are excluded, per Unchained. Trading activity has surged; Bitcoin.com cites annualized volume growth from $52 billion to $178 billion over six months, and Cointelegraph notes $15.8 billion of volume in the most recent 30‑day period. Non‑sports contracts now generate more than $1 billion in annualized revenue, according to the Wall Street Journal, while overall revenue run‑rate exceeded $1.5 billion in May.

Regulatory headwinds

Kalshi’s expansion is shadowed by a legal dispute over its sports‑related contracts. State regulators argue the contracts constitute gambling and should fall under state oversight, a stance that threatens a revenue stream that has historically accounted for up to 65% of the company’s earnings, as reported by Bitcoin.com. Utah’s attorney general filed criminal charges against Kalshi and its founders, alleging illegal promotion of online gambling. The CFTC has asked a federal judge to halt Utah’s civil case, while the agency itself launched a separate lawsuit to block state enforcement, according to Cointelegraph. Kalshi maintains that federal derivatives law governs its contracts.

What to watch next

Analysts will monitor several developments: the rollout timeline for single‑stock perpetuals and compute‑price markets; the outcome of Utah’s criminal case and the CFTC’s federal action, which could set precedent for the industry; and Kalshi’s partnership pipeline, including recent agreements with the NBA, Polymarket, and S&P Dow Jones Indices. The company has hinted at an IPO no earlier than 2027, making the next 12‑18 months critical for assessing whether its valuation is sustainable amid regulatory uncertainty.

Sources

This article was prepared by the CoinMag newsroom from the reports listed above.