Kalshi Hits $22 Billion Valuation as Prediction Markets Attract Major Investors

TLDR

• Kalshi raised over $1 billion in a new funding round led by Coatue Management, doubling its valuation to $22 billion in just a few months.
• The company’s annualized revenue is running at $1.5 billion, with February trading volume exceeding $10 billion.
• Kalshi faces criminal charges in Arizona for allegedly operating an illegal gambling business.
• Nevada’s Ninth Circuit Court of Appeals cleared the way for a ban on Kalshi’s operations in the state.
• Kalshi previously uncovered insider trading cases, including one involving an editor linked to YouTuber MrBeast.

Prediction market platform Kalshi has raised more than $1 billion in a new funding round, pushing its valuation to $22 billion. The round was led by investment firm Coatue Management, according to Bloomberg and The Wall Street Journal.

The new valuation is double what the company was worth in December 2025, when it raised another $1 billion at an $11 billion valuation. That earlier round was led by Paradigm and included Sequoia Capital, Andreessen Horowitz, ARK Invest, and Alphabet’s CapitalG.

Kalshi was founded in 2018 by Tarek Mansour and Luana Lopes Lara. It operates as a regulated financial exchange overseen by the Commodity Futures Trading Commission, making it the first regulated prediction market exchange in the United States.

The platform lets users trade contracts tied to real-world outcomes — from election results to oil prices to whether the existence of aliens will be confirmed. Its customer base includes everyday consumers, institutional market-makers, and businesses using it to hedge against specific outcomes.

In February, trading volume on the platform crossed $10 billion. That is roughly 12 times the volume recorded just six months earlier, according to KalshiData. The company’s annualized revenue is currently $1.5 billion.

Investor interest in the current round has been driven partly by growth on the institutional side of Kalshi’s business, according to a person familiar with the matter cited by the Wall Street Journal.

Its main rival, Polymarket, has grown at a similar pace but operates mostly outside the United States. Both companies have recently been valued at around $20 billion.

Legal Pressure Mounts Across Multiple States

Despite its rapid growth, Kalshi is facing serious legal challenges. Arizona filed 20 criminal charges against the company earlier this week, accusing it of running an illegal gambling business without a license and offering election wagering in the state. Kalshi has called the state-level charges “seriously flawed.”

On Thursday, the Ninth Circuit Court of Appeals denied Kalshi’s request to block an expected temporary restraining order in Nevada. That ruling clears the way for the state to ban the platform’s operations there.

Kalshi has itself sued multiple states in an effort to stop similar bans. The company argues it falls under federal regulation by the CFTC and is not subject to state gambling laws. More than a dozen state-level actions are currently underway across the country.

Insider Trading Cases Add Scrutiny

Last month, Kalshi revealed it had found and penalized two users for insider trading. One of those users was an editor connected to MrBeast, the popular social media personality.

The company also disclosed it had more than a dozen active insider trading cases out of approximately 200 it had investigated.

Kalshi declined to comment on the new funding round when contacted by media outlets.

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