Kalshi closed a $1bn funding round on Thursday, pushing its valuation to $22 billion, more than quadruple the $5bn level seen two months earlier and double the $11bn price tag from December. Lead investor Coatue, alongside Sequoia Capital, Andreessen Horowitz and Morgan Stanley, anchored the raise. The surge reflects exploding demand for prediction‑market contracts that let traders bet on binary outcomes and draws fintech interest.

Sports wagers drive most of Kalshi’s revenue, accounting for roughly 85% of its $178 billion annualised trading volume in April, up from $5.5 billion a year earlier. The platform plans to use fresh capital to expand block‑trading features and launch new risk products aimed at institutional clients. Regulators continue to firmly challenge its status, arguing the contracts constitute illegal gambling.

Kalshi’s rapid scaling places it alongside rival Polymarket as the sector draws scrutiny from state gaming authorities and the CFTC, which classifies its contracts as derivatives. A recent injunction halted an Arizona criminal probe, but lawsuits persist. Analyst Gautam Chhugani projects prediction‑market volume could reach $1 trillion by 2030, signalling that Kalshi’s growth may reshape how financial firms access event‑driven risk in the broader market.