Kalshi confirms $1 billion raise at $22 billion valuation amid prediction market boom

Institutional trading volume surged 800% over the past six months on the platform, while annualized trading activity reached $178 billion despite growing regulatory scrutiny.

What to know:

• Kalshi confirmed a weeks-old report that it raised $1 billion in an investment round led by Coatue, valuing the firm at $22 billion.
• Prediction markets like Klashi and Polymarket are gaining traction as trading and hedging tools on Wall Street.
• Kalshi's institutional trading volume surged 800% over six months, while annualized trading activity more than tripled to $178 billion during the same period.

Prediction market platform Kalshi said it raised $1 billion in fresh funding at a $22 billion valuation, as institutional investors increasingly turn to event contracts for trading and hedging.

The Series F round was led by Coatue and included Sequoia Capital, Andreessen Horowitz (a16z), Paradigm, IVP, Morgan Stanley and ARK Invest, according to a Thursday press release. The news confirmed a Bloomberg report in March about the investment round and valuation.

The firm said it plans to use the capital to expand institutional services, including block trading tools, broker integrations and new risk products aimed at asset managers and insurance firms.

The fundraising comes as prediction markets have gained momentum in crypto and traditional finance alike as firms look for alternative ways to gauge probabilities and manage risk. Hedge funds and proprietary trading firms increasingly use event contracts alongside conventional derivatives to hedge exposure or express macroeconomic views.

The company operates a regulated marketplace where users trade contracts tied to real-world outcomes, from elections and economic data to sports and weather events. Traders buy contracts that pay out if a specific event occurs, turning forecasts into tradable markets.

Kalshi said institutional trading volume on the platform jumped 800% over the past six months, while annualized trading volume more than tripled to $178 billion during the same period.

Amid staggering growth, prediction markets have also drawn growing scrutiny from U.S. regulators and state authorities. Nevada, New Jersey, Illinois and several other states have issued cease-and-desist orders or launched legal challenges against Kalshi, arguing that some event contracts resemble unlicensed sports betting products. Kalshi has pushed back, saying its federally regulated exchange falls under the oversight of the Commodity Futures Trading Commission (CFTC) rather than state gambling regulators.

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