Key Takeaways
- • Kalshi raised a $1bn Series G round at a $40bn valuation, nearly doubling the $22bn valuation from its previous $1bn round less than six months earlier, according to Institutional Investor.
- • Wellington and Sequoia Capital co-led the round, with Coatue and Balyasny confirmed as participants and Millennium and Tiger Global identified as investors by Crunchbase.
- • Kalshi reports more than $1tn in annualised trading volume, over 30 million registered accounts, and a market share above 75% of prediction market trading.
- • Non-sports business generates more than $1bn in annualised revenue, with crypto trading at $140bn annualised volume and perpetual futures at $83bn in trading activity.
- • Regulatory risk persists: Utah has filed criminal charges against Kalshi and its co-founders over alleged gambling law violations, and the CFTC has challenged the state's investigation.
Summary
The investment reflects growing hedge fund interest in prediction markets and alternative trading infrastructure as Kalshi expands beyond event-based contracts into cryptocurrency, commodities, economic indicators and perpetual futures. The company reported more than $1tn in annualised trading volume, over 30 million registered accounts and a market share exceeding 75% of prediction market trading activity.
Kalshi said its non-sports business now generates more than $1bn in annualised revenue. Cryptocurrency trading reached $140bn in annualised volume, and its recently launched perpetual futures platform recorded $83bn in trading activity. Its commodities business has surpassed $100m in annualised trading fees within three months. The company is targeting hedge funds, asset managers and proprietary trading firms seeking additional trading and hedging opportunities, reflecting increasing institutional attention to prediction markets.
The sector continues to face regulatory scrutiny. Utah has filed criminal charges against Kalshi and its co-founders over alleged gambling law violations. The Commodity Futures Trading Commission has subsequently challenged the state's investigation, underscoring ongoing uncertainty over the regulatory treatment of prediction market contracts.
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