Kalshi raises $1B at $40B valuation as it expands into crypto and stock perpetual futures

The prediction market operator's valuation has climbed 82% in five months as it moves beyond event contracts to compete with established financial exchanges. Prediction market operator Kalshi has raised $1 billion in a funding round valuing the company at $40 billion, as it accelerates plans to expand into cryptocurrency derivatives, stock perpetual futures and other financial markets. The funding round, announced Thursday, was co-led by Sequoia Capital and Wellington Management, with participation from Tiger Global Management and Dragoneer Investment Group, according to Reuters. Kalshi’s valuation has increased nearly 82% from the $22 billion it secured in May, when the company completed another $1 billion financing round led by Coatue Management. The latest investment comes as Kalshi seeks to transform its business from a platform primarily known for sports and political event contracts into a broader financial exchange competing with established operators such as CME Group and Intercontinental Exchange. The company plans to use the capital to develop new trading products, including leveraged event contracts, perpetual futures tied to individual stocks and markets for trading the...