TLDR
- Kalshi valuation doubled to $22 billion after raising over $1 billion
- February 2026 trading volume surged past $10 billion on the platform
- Annual revenue run rate reached an estimated $1.5 billion level
- Coatue led the funding round with support from top venture firms
- Weekly prediction market volume exceeded $6 billion across platforms
Kalshi has reportedly raised more than $1 billion in a new funding round, pushing its valuation to $22 billion. The latest deal reflects rising investor interest in prediction markets as trading volumes grow rapidly. The company continues to expand its offerings while facing regulatory attention and increasing participation from institutional firms across global financial markets.
Kalshi Funding Round Doubles Company Valuation
Kalshi has reportedly raised more than $1 billion in a new funding round. The deal values the company at $22 billion. This marks a sharp rise from its $11 billion valuation in December 2025. The funding round was led by Coatue Management, according to a person familiar with the matter. Earlier investors include Paradigm, Sequoia Capital, Andreessen Horowitz, and ARK Invest.
Both Kalshi and Coatue declined to comment on the details. The company operates a regulated exchange that offers contracts based on real-world events. These contracts allow users to trade on outcomes across different sectors. Kalshi gained wide attention after a court ruling allowed election-related trading in 2024.
Since then, the platform has expanded into sports-related contracts, and this category now drives a large share of activity. User participation has increased, and trading volumes have risen across the exchange. Kalshi’s annual revenue run rate is estimated at $1.5 billion, based on available data. This reflects strong activity and steady growth in its user base.
Trading Activity Expands Across Prediction Markets
Kalshi has recorded strong growth in trading volume over recent months. In February 2026, its monthly volume surpassed $10 billion. This figure was about 12 times higher than levels seen six months earlier. Data from Dune Analytics shows that trading volumes across prediction markets have grown at a fast pace.
Weekly volumes now reach billions of dollars across major platforms. Polymarket, a key competitor, has also reported similar growth. It mainly operates outside the United States. Both platforms benefit from increased interest in event-based trading products.
Venture capitalist Chamath Palihapitiya said, “Prediction markets have over $6 billion in weekly trading volume.” He added that volumes have grown more than 100 times in about two years. Some industry projections suggest that annual trading volume could reach $1 trillion before the end of the decade. This reflects continued expansion in the sector.
Regulatory Pressure and Institutional Moves Continue
Kalshi faces regulatory scrutiny as it expands its operations. Arizona authorities have filed criminal charges, calling it an illegal gambling operation. Kalshi has rejected these claims. The platform operates under the oversight of the Commodity Futures Trading Commission. This allows it to function nationwide under federal rules.
However, several state regulators continue to raise concerns. Lawmakers have pointed to risks related to insider trading and market manipulation. These concerns have led some financial firms to limit employee participation. Point72 and Balyasny have banned staff from trading on such platforms.
At the same time, institutional involvement continues to grow. Firms such as Susquehanna and Jump Trading act as market makers on Kalshi. Tradeweb Markets has partnered with the company to provide market data services. The sector continues to attract investor interest even as regulatory discussions remain active across different regions.
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