Kalshi has begun raising money in the private markets after finalizing funding at a $40bn valuation, as it parts ways with strategic advisor Donald Trump Jr, as reported by Bloomberg and Reuters. Now seeking new capital at a $65bn valuation, the prediction market is seeking one last fundraising round before going public.
According to the report, an unnamed source told the outlet that the current volatility of the financial market has not deterred Kalshi's plans to make its initial public offering (IPO).
The new valuation aims to build a new platform for trading compute futures. This move is part of the operator's larger strategy to venture into newer products. Computue futures are contracts that allow users to trade on the future prices of computing resources.
It was also reported that during its final funding round, the prediction market had gross margins of approximately 90%. The operator's full market value of assets, or monthly notional trading volume, more than doubled over two months, going from $40bn to $100bn.
Recently, Kalshi announced it would cut ties with President Donald Trump's son, Donald Trump Jr. The President's offspring was named a "strategic advisor" in January 2025, shortly before the President's inauguration, and received equity valued at $300,000 at the time.
Why Kalshi is ending ties with the President's family
The operator decided to part ways with its strategic advisor due to Trump Jr's recent $300m investment in its main competitor Polymarket. A spokesperson for Kalshi told the New York Post: "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."
The President's family has been strongly supporting prediction markets since 2025. However, with Democrats taking control of Congress, it is likely that these platforms will receive more regulatory scrutiny going forward.
Currently, Kalshi is engaged in several legal battles with states across the country that argue its sports-related contracts should fall under their jurisdiction. This week, the Louisiana Attorney General filed a lawsuit against 10 prediction markets, in an attempt to hinder their activity.
The prediction market is also facing lawsuits in Oklahoma, Arkansas, Utah and a possible Supreme Court hearing spearheaded by the New Jersey Attorney General.
Ohio and 38 other states have backed New Jersey's petition to the Supreme Court
