Kalshi Raises $1.12 Billion in Stock Offering, Leaving 25% Unsold

Kalshi has sold $1.12 billion in stock out of a $1.5 billion equity offering, according to a Form D notice filed with the Securities and Exchange Commission on Aug. 25.

The sales began April 3 and ran through 71 investors, leaving about $380 million of the offering unsold. The disclosure puts a number on how much institutional money has moved into prediction markets. Those federally regulated venues let traders buy contracts that pay out on real-world events.

Institutional Buyers Drive the Round

Kalshi announced a $1 billion Series F on May 7, a month after the offering's first sale. Coatue led it at a $22 billion valuation, with Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley and ARK Invest taking part.

Institutional trading volume rose 800% over six months, the company said, while annualized trading volume climbed from $52 billion to $178 billion. Kalshi said in May that its annualized revenue exceeds $1.5 billion.

There are few categories in recent history that have scaled this quickly outside of AI. Event contracts could become a trillion-dollar market, and we're still in the early stages of that transition.

Co-founder and Chief Executive Tarek Mansour made that comparison in the Series F announcement.

State Lawsuits Trail the Valuation

The money is arriving while Kalshi fights state authorities in court. New York asked a Manhattan judge for at least $36 billion in damages in July, arguing the exchange needs a gaming license, and a King County judge granted Washington a preliminary injunction against it the same month.

Rival Polymarket is in early talks to raise about $1 billion at more than double its October 2025 valuation.

Kalshi is separately in talks to raise $750 million at a $40 billion valuation, according to multiple reports, with its founders targeting a public listing as early as 2027. The Form D does not say whether the offering it describes is the Series F, and Kalshi did not respond to Cointelegraph's request for clarification.

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