Kalshi explores a $65bn valuation after its $1bn Series G funding round

Kalshi is reportedly discussing a new fundraising round that could value the prediction-market operator at $65 billion. The talks emerged on November 12, around two weeks after the company announced a $1 billion Series G round at a $40 billion post-money valuation. The $65 billion figure is a proposed fundraising valuation, not a completed transaction or confirmed change in the company's value.

The development comes as Kalshi expands beyond event contracts, faces legal challenges over some of its markets and changes its advisory relationship with Donald Trump Jr.

Kalshi seeks further funding after its $40bn round

On October 29, Kalshi confirmed that it had raised $1 billion in Series G financing at a $40 billion post-money valuation. Wellington Management and Sequoia Capital co-led the round alongside additional investors.

The company said the funding would support product development, institutional participation and international expansion. Kalshi has described its ambition as building a broader financial exchange rather than focusing exclusively on contracts linked to sports, elections and public events.

In its funding announcement, Kalshi reported that annualised trading volume across prediction markets, commodities, cryptocurrency and perpetual futures had exceeded $1 trillion. This is a company-reported annualised figure and should not be confused with monthly revenue or profit.

Separately, reports about the proposed $65 billion valuation cited monthly notional trading volume rising from approximately $40 billion in August to almost $100 billion in October.

Notional volume measures the stated value of contracts traded. It does not represent revenue, profit or cash held by the company. The distinction is important when evaluating the financial significance of the figures and determining whether the proposed valuation reflects sustainable business performance.

Compute markets feature in the expansion strategy

Kalshi's October announcement outlined plans to develop new indices, single-stock perpetual futures and compute markets linked to the future cost of computing power.

Such markets could appeal to businesses and investors seeking ways to assess or manage their exposure to computing resources required for artificial intelligence and other data-intensive services. Demand for computing capacity has become an increasingly important commercial consideration as companies expand their use of advanced models and cloud infrastructure.

The company has presented compute markets as a planned product area. Its announcement does not establish that a dedicated compute-futures platform is already operating or that the reported $65 billion fundraising discussions are intended solely to finance it.

Kalshi's broader strategy also includes institutional services, additional financial products and international growth. The commercial value of these developments will depend on their ability to attract lasting demand, sufficient liquidity and institutional participation.

Kalshi ends Donald Trump Jr's advisory role

The fundraising discussions coincided with Kalshi's decision to end its advisory relationship with Donald Trump Jr. The company said the move was mutually agreed after 1789 Capital, the investment firm with which Trump Jr is associated, made a significant investment in rival prediction-market platform Polymarket.

Trump Jr joined Kalshi as a strategic adviser in January 2025. His departure follows the reported involvement of 1789 Capital in Polymarket's latest financing activities.

A spokesperson for Kalshi explained the decision:

“We have mutually agreed to end Don’s advisory role after his firm’s significant investment in a competitor this past summer.

“We are grateful for his contributions in helping us market Kalshi to more customers.”

Media reports said 1789 Capital contributed approximately $300 million to Polymarket as part of a broader funding round reported to total about $1 billion. These figures relate to reporting about the investment rather than a direct financial disclosure from Kalshi.

The company attributed the end of the advisory arrangement to the investment firm's involvement with a competing platform. Kalshi described the decision as mutual. The circumstances do not, by themselves, establish any additional motive.

Legal disputes create uncertainty for prediction markets

The legal status of some prediction-market contracts remains contested in the United States. The central issue is whether sports-related event contracts fall under federal derivatives regulation or state gambling laws.

The Commodity Futures Trading Commission lists Kalshi as a designated contract market. However, this federal status has not prevented individual states from challenging the scope of certain products and asserting their authority to regulate them.

Arkansas and Utah are among the states whose officials have taken legal action concerning Kalshi's sports-related contracts. The Arkansas Attorney General's Office has challenged the company's activities under state law while the Utah Attorney General's Office has also pursued legal proceedings.

Louisiana Attorney General Liz Murrill announced another lawsuit on November 12 involving Kalshi, Polymarket and other prediction-market operators.

The claims made by state authorities remain allegations and should not be treated as final findings of unlawful conduct. The broader dispute concerns the division of regulatory authority between federal agencies and individual states.

New Jersey has separately asked the US Supreme Court to review the regulatory question. Its petition was filed in September in a case involving the New Jersey Division of Gaming Enforcement and KalshiEX.

As of November 13, the Court's docket showed that the response deadline had been extended to December 7. The filing does not mean that the Supreme Court has agreed to hear the case.

The outcome of these disputes could affect Kalshi's product range, access to state markets and compliance costs. Continued litigation could delay expansion or restrict certain products while the legal questions remain unresolved.

Political developments may bring closer scrutiny

The November 3, 2026 midterm elections shifted control of both chambers of Congress to the Democrats. The new majority is expected to take office when the new Congress convenes in January 2027.

The political change could bring closer scrutiny of prediction markets, including questions about consumer safeguards, market integrity and sports-related contracts.

However, potential regulatory changes should not be confused with legislation that has already been introduced or approved. Any new requirements would depend on future legislative, regulatory or court action.

What would justify a $65bn valuation?

A move from a $40 billion post-money valuation to a proposed $65 billion figure would represent an increase of 62.5%. To support that step-up, Kalshi would need to demonstrate that its trading activity can translate into durable revenue, sustainable margins and a business model that works across several product categories.

Investors may look beyond headline trading volume to assess customer retention, liquidity, institutional demand, product performance and regulatory costs. Compute markets and other financial products could broaden the company's commercial opportunities, but their success will depend on execution.

An initial public offering has been discussed as a possible future milestone. Kalshi has not announced a confirmed IPO date. The reported fundraising talks should therefore be viewed as a possible private-market transaction rather than proof that a public listing is imminent.

Conclusion

Kalshi's reported discussions at a $65 billion valuation underline investor interest in prediction markets and the company's ambition to become a broader financial exchange. Its $1 billion Series G round, expansion plans and reported rise in trading activity help explain why investors may be considering a higher valuation. The end of Donald Trump Jr's advisory role also marks a notable change in the company's relationship with a figure connected to a rival platform.

Nevertheless, the proposed figure remains unconfirmed. Trading activity must translate into sustainable financial performance, new products must attract lasting demand and the legal framework for event contracts must become clearer.

For now, $65 billion is a valuation Kalshi is reportedly seeking rather than a price established by a completed funding round. Its ability to justify that figure will depend on commercial results, institutional confidence and its capacity to navigate regulatory uncertainty. The next phase of the company's development will therefore be important in determining whether its ambitious valuation expectations can be supported by measurable business performance.

FAQs

What is Kalshi?
Kalshi is a prediction-market exchange that allows participants to trade contracts based on the outcomes of real-world events. Its markets cover areas including economics, politics, sports and other developments.

Why is Kalshi seeking a $65 billion valuation?
Reports published on November 12, 2026 indicated that Kalshi was discussing another fundraising round at a proposed $65 billion valuation. Its expansion, trading activity and plans to introduce additional financial products are relevant to the reported discussions.

What was Kalshi's previous valuation?
Kalshi announced a $1 billion Series G funding round on October 29, 2026 at a $40 billion post-money valuation.

Who led Kalshi's latest funding round?
Wellington Management and Sequoia Capital co-led the October 2026 Series G round alongside additional investors.

Why did Kalshi end Donald Trump Jr's advisory role?
Kalshi said the decision was mutual and followed a significant investment by 1789 Capital, the investment firm associated with Trump Jr, in competing platform Polymarket.

How much did 1789 Capital reportedly invest in Polymarket?
Media reports attributed approximately $300 million of Polymarket's reported $1 billion fundraising round to 1789 Capital.

What are Kalshi's compute markets?
Compute markets are part of Kalshi's planned product expansion. They are intended to provide markets connected to the future cost of computing power.

Is Kalshi preparing for an IPO?
An IPO has been discussed as a possible future development. However, the company has not announced an official IPO date or confirmed a public listing timetable.

Why is Kalshi facing legal challenges in the United States?
Several state authorities argue that certain sports-related event contracts fall under state gambling laws. The disputes concern whether federal derivatives regulation or state gambling regulations should govern these products.

Has the US Supreme Court agreed to hear the Kalshi case?
New Jersey has filed a petition asking the Supreme Court to review the regulatory dispute. As of November 13, 2026, the Court's docket did not show that the petition had been accepted for a hearing.