Kalshi Seeks Record-Breaking Valuation Amid Prediction Market Boom

Kalshi, a leading prediction market platform, is reportedly seeking a valuation of $40 billion in fresh funding just one month after securing a $22 billion valuation through its previous round. The new financing could close as early as the third quarter, according to sources familiar with the discussions.

This rapid increase in valuation reflects the growing popularity of prediction markets across various sectors, including sports, politics, financial markets, and entertainment. Kalshi's annualized trading volume has reached $178 billion, more than triple the level recorded six months earlier, with over 65% of its total volume generated from sports-related contracts.

The company is also expanding into traditional derivatives markets, having recently launched perpetual cryptocurrency futures after receiving approval from the Commodity Futures Trading Commission. However, this move has sparked a lawsuit from CME Group, which argues that the contracts should be treated as swaps and subjected to a different approval process.