Kalshi raises $1 billion at a $40 billion valuation, nearly doubling its May price, and says its non-sports markets earn more than $1 billion a year

Kalshi has raised $1 billion at a $40 billion valuation, a little over five months after a $1 billion round at $22 billion that Cointelegraph says Coatue led. The company's own announcement names Wellington and Sequoia as lead investors, with participation from Baillie Gifford, Andreessen Horowitz, Coatue, CapitalG and others. Reuters, citing a source, adds Tiger Global and Dragoneer.

Kalshi says its annualized trading volume exceeds $1 trillion across prediction markets, commodities, crypto and perpetual futures, that more than 30 million accounts have been opened, and that it earns more than $1 billion a year in annualized revenue outside sports. Those figures are the company's own. It plans to use the money to grow institutional business, launch indices, single-stock perpetual futures and compute markets, and expand in Latin America and Europe. Reuters says the move puts it in competition with exchanges such as CME Group and ICE.

The legal fight over whether its sports contracts are gambling or federal derivatives continues. Utah's attorney general charged Kalshi and two executives on Wednesday, and the CFTC sued Utah the day before.