TL;DR:
- Kalshi raised over $1 billion in a round led by Coatue Management, reaching a valuation of $22 billion.
- This figure doubles the $11 billion valuation reached in November and reflects an annualized revenue run rate of $1.5 billion.
- Arizona filed criminal charges against Kalshi’s parent entities for operating a gambling business without a state license.
Kalshi, the New York-based prediction markets platform, raised over $1 billion in an ongoing funding round led by Coatue Management, at a valuation of approximately $22 billion. The deal was first reported by the Wall Street Journal and later confirmed by Bloomberg, which noted that the amount has already exceeded the initial target and that Coatue is leading the process.
The new valuation marks a substantial leap from the close of its Series E in November, when the company was valued at $11 billion. In just four months, the platform doubled its market value. The platform’s annualized revenue run rate reached $1.5 billion, according to the WSJ, driven by participation from retail users, institutional market makers and companies using its contracts to hedge risk.
Kalshi: Federal Regulation Versus State Pressure
Kalshi operates as a federally regulated exchange under the oversight of the Commodity Futures Trading Commission, which allows users in the United States to trade contracts tied to real-world event outcomes. Unlike its competitor Polymarket, whose infrastructure is entirely crypto-native, Kalshi accepts deposits and withdrawals in cryptocurrencies but converts funds to fiat currency for trading operations.
Nevertheless, the platform is being besieged by regulatory pressure. Arizona filed criminal charges against the company’s parent entities, alleging that it operates an illegal gambling business without a state license. Kalshi rejected the accusations, describing them as “seriously flawed” and arguing that its contracts fall under federal jurisdiction. The U.S. Court of Appeals for the Ninth Circuit denied an emergency administrative stay request filed by the platform in a case linked to Nevada.
Despite the adverse legal climate, firms such as Susquehanna International Group and Jump Trading actively operate as market makers on the platform. Tradeweb Markets recently announced a partnership with the platform to distribute prediction market data.
