Kalshi raises $1.12 billion after securing $22 billion valuation

Kalshi has raised about $1.12 billion through an equity offering since April, with a new U.S. securities filing showing roughly $380 million remains available under the nearly $1.5 billion offering.

The Securities and Exchange Commission filing submitted on Aug. 25 shows Kalshi Inc. has sold $1.12 billion of equity since the first sale took place in April, providing a new figure for the prediction market operator’s fundraising during a year in which its private valuation and trading activity have climbed sharply.

Filed through Form D, the notice lists the total offering at nearly $1.5 billion and records about $380 million as remaining unsold. Form D is used by companies to report securities offerings that rely on exemptions from full SEC registration requirements.

The filing does not break down which financing rounds make up the $1.12 billion already sold. The Block, which first reported the filing, said the amount could include Kalshi’s previously disclosed $1 billion Series F financing.

Kalshi filing follows its $1 billion Series F

Coatue led the Series F announced in May, valuing Kalshi at $22 billion and bringing in capital from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley and ARK Invest.

As crypto.news reported in May, the financing doubled Kalshi’s valuation from the $11 billion level reached only months earlier and represented its third funding round in seven months.

The company had previously raised $300 million at a valuation of about $5 billion before another round lifted its value to $11 billion. The May transaction then doubled that figure again, leaving Kalshi valued at roughly four times its level less than a year earlier.

Business figures released around the Series F also showed how quickly activity on the platform had increased. Kalshi said annualized trading volume had more than tripled over six months, rising from $52 billion to $178 billion, while institutional trading volume increased 800% during the same period.

The company also reported more than two million monthly users and an annualized revenue rate of roughly $1.5 billion at the time.

Kalshi CEO Tarek Mansour said when the Series F was announced that event contracts had the potential to become a trillion-dollar market. The funding was expected to support additional institutional adoption among hedge funds, asset managers, proprietary trading firms and other professional market participants.

Tuesday’s filing does not say whether the remaining $380 million will be sold or identify potential investors. It also does not confirm that the registered offering represents a new financing separate from the Series F.

The Block said it contacted Kalshi for more information about the filing and its connection to reports of another capital raise.

New talks could value Kalshi at $40 billion

Investor discussions have continued since the May financing despite the sharp increase in Kalshi’s valuation.

The Financial Times reported in June, citing people familiar with the matter, that the company was seeking another funding round at a valuation of about $40 billion. The financing could close as early as the third quarter of 2026, according to the report.

A $40 billion funding report published in June showed that the proposed figure would represent an increase of roughly 82% from Kalshi’s $22 billion Series F valuation less than two months earlier.

More details emerged in August, when The Information reported that Kalshi was in advanced talks to raise at least $750 million at the same $40 billion valuation.

Sequoia Capital and Wellington Management were discussing co-leading the transaction, according to people familiar with the talks cited by the publication. Sequoia is already an investor in Kalshi, while partner Alfred Lin sits on the company’s board. Wellington would enter as a new investor if the deal is completed.

The size and terms of the proposed financing could still change, according to the report.

A $40 billion valuation would put another substantial increase on a company that was valued at $5 billion during an earlier funding round and $11 billion before reaching $22 billion in May.

The latest Form D does not establish whether the $750 million financing reported by The Information forms part of the nearly $1.5 billion offering listed with the SEC.

Kalshi has also explored an IPO

Funding discussions have run alongside early preparations for a possible public listing.

By June, Kalshi had started informal IPO discussions with investment banks, according to The Information, although the company had not committed to a timeline for going public.

Kalshi’s annualized revenue run rate had exceeded $2 billion when those discussions were reported, while trading activity was also climbing.

The platform processed about $16.81 billion in trading volume during May, up from $14.81 billion in April. Rival prediction market Polymarket recorded around $7.08 billion in volume during May after $9.01 billion the previous month.

Trading accelerated further through the summer. Kalshi reported around $40 billion in volume during July, according to figures cited by The Block, compared with a combined $12.9 billion for Polymarket and Polymarket US during the same month.

The Information separately reported that Kalshi’s annualized revenue had climbed above $4 billion by July, with activity surrounding the FIFA World Cup contributing to trading on the platform.

Sports contracts have become a major source of Kalshi’s activity. At Consensus Miami in May, figures discussed during a prediction market debate placed sports at roughly 85% to 90% of the platform’s trading volume.

Kalshi operates as a designated contract market regulated by the Commodity Futures Trading Commission, allowing it to offer event contracts under federal derivatives rules. Its treatment of sports-linked markets has also produced disputes with state authorities that consider some of those products forms of sports betting subject to local gambling laws.

Crypto derivatives have added another source of volume

Kalshi has also moved beyond its core prediction markets by expanding into perpetual futures.

The company introduced regulated Bitcoin perpetual futures in the United States earlier this year before adding Ethereum contracts and filing for products linked to XRP, Solana, Dogecoin, Hyperliquid and other digital assets.

Within roughly two weeks of launch, Kalshi’s perpetual futures volume exceeded $5.5 billion, according to Bloomberg figures cited in June.

At the time, the platform listed 11 crypto-linked perpetual contracts and was discussing additional products with regulators. Kalshi was also considering perpetual futures tied to markets outside crypto, including gold, foreign exchange and energy.

The product expansion came as trading across the platform reached several consecutive days above $1 billion, helped by activity tied to major sporting events including the FIFA World Cup and NBA Finals.

Meanwhile, regulatory disputes over prediction markets have continued at the state level. Kalshi has argued that contracts listed on its federally regulated exchange fall under CFTC jurisdiction, while several states maintain that sports-event contracts must comply with state gaming requirements.

Those disputes have led to lawsuits in states including Illinois and New York as Kalshi continues operating its prediction market and derivatives businesses.

The Aug. 25 Form D records nearly $1.5 billion as the total equity offering, with approximately $1.12 billion sold since April and about $380 million remaining available.