Kalshi's valuation rockets to $40B as trading volumes triple in a year

Prediction market operator Kalshi has seen rapid growth in trading activity and valuation. The company now dominates the regulated sector, with institutional interest surging in recent months. Its market position has strengthened under U.S. regulatory oversight. Kalshi’s annualised trading volume jumped from $52 billion to $178 billion in the past six months. Institutional trading on its platform rose eightfold during the same period. This growth has pushed the company’s valuation from $2 billion in June 2025 to $22 billion by May 2026.

Less than two months ago, Kalshi secured a $1 billion funding round at a $22 billion valuation. Now, it is in talks to raise fresh capital at roughly double that figure, around $40 billion. Its regulatory standing with the CFTC has given it an edge over competitors like Polymarket, which is seeking funding at about $15 billion.

The firm is also exploring a potential initial public offering. However, any listing is unlikely to happen before 2027. Its rising prominence reflects the broader shift of prediction markets into mainstream finance. Kalshi’s valuation has soared, and its trading volumes continue to climb. The company’s regulated status and institutional appeal set it apart in the prediction market sector. A future IPO remains on the table, though not in the immediate term.