Prediction market platform Kalshi closed a $1 billion funding round at a $40 billion valuation. The company plans to expand into new derivatives products while facing legal challenges over its sports contracts.
Prediction market platform Kalshi has closed a $1 billion funding round at a $40 billion valuation, Reuters reported Thursday, as the company expands beyond sports betting into financial markets.
The Series G round was co-led by Wellington Management and Sequoia Capital. Kalshi also said its non-sports markets now generate more than $1 billion in annualized revenue, according to The Wall Street Journal.
Previously, Kalshi was valued at $22 billion in May, when it completed a $1 billion Series F round led by Coatue Management.
Kalshi targets stock perpetual futures and AI computing markets
Next, the company plans to use the capital to develop new trading products, according to Crypto Briefing. These include leveraged event contracts, perpetual futures tied to individual stocks and markets for trading the price of AI computing capacity.
Kalshi entered the perpetual futures market in May after receiving approval from the Commodity Futures Trading Commission, Crypto Briefing reported. Unlike traditional futures, perpetual futures have no expiration date, and they can also offer leverage, which amplifies both potential gains and losses.
Partnerships grow as Utah files criminal charges
Meanwhile, Kalshi keeps adding partners. On Monday, the NBA named Kalshi and Polymarket preferred prediction market exchanges, while S&P Dow Jones Indices partnered with Kalshi to bring its financial benchmarks to event contracts.
The deals come amid a dispute over whether Kalshi's sports contracts fall under state gambling laws or federal derivatives regulation. Utah sued the company last week, and the US Commodity Futures Trading Commission filed a separate lawsuit on Tuesday seeking to block state enforcement. On Wednesday, Utah filed criminal charges against Kalshi and its co-founders, according to Reuters.
Sources: Cointelegraph, Crypto Briefing
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