The new valuation represents a doubling of the New York-based firm’s $11 billion valuation established five months ago.
“Kalshi will use the new capital to scale adoption across hedge funds, asset managers, proprietary trading firms and insurance companies, unlocking access to trillions of dollars in capital,” the post said. “The company will continue expanding its product suite, including recently launched block trading capabilities, upcoming risk products, and deeper broker integrations tailored to institutional demand.”
The round was led by Coatue and included participation from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley and ARK Invest, per the post.
The capital infusion follows a surge in the popularity of prediction markets, as retail investors increasingly use event contracts to trade on political, sporting and economic outcomes. Kalshi’s annualized trading volume has tripled over the last six months, growing from $52 billion to $178 billion, according to the post. A company spokesperson stated that Kalshi’s annualized revenue exceeds $1.5 billion.
“This growth reflects a broader shift: prediction markets are moving beyond early adoption,” the post said. “Institutions are increasingly turning to event contracts to hedge real-world risk and access continuous, market-based signals on future outcomes.”
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The rapid rise in Kalshi’s market value reflects broader investor interest in the sector despite legal challenges in several U.S. states. In Arizona, Attorney General Kris Mayes filed criminal charges alleging the platform operates an unlicensed wagering business and facilitates illegal betting on elections.
Washington state also sued, claiming Kalshi violates its Gambling Act by allowing users to bet on outcomes ranging from elections to Supreme Court cases. Furthermore, Nevada regulators secured a temporary restraining order to halt Kalshi’s sports and entertainment contracts, while Wisconsin sued the company for allegedly disguising illegal sports betting as “event contracts.”
Kalshi dismissed these actions as “meritless,” designed to circumvent federal court evaluation. The company maintains it is a regulated, nationwide exchange subject to exclusive federal jurisdiction, making it distinct from state-regulated casinos.
The conflict has sparked a jurisdictional battle with the Commodity Futures Trading Commission, which asserts it holds sole oversight, characterizing event contracts as “swaps” under the Commodity Exchange Act. While state attorneys general argue they must step up for consumer protection, the CFTC has begun filing its own lawsuits to defend its regulatory authority.
