Kalshi is in negotiations to raise about $1 billion at a $40 billion valuation in a new funding round—nearly double the company’s May valuation.

May Round: $1 Billion at $22 Billion Valuation

In May, Kalshi closed a Series F round of $1 billion at a $22 billion valuation, doubling its value since December. According to market sources, the new round aims to further increase capital.

Lead Investors Under Discussion, Terms May Change

Existing investors Sequoia Capital and Wellington Management are in discussions to serve as lead investors. Potential participants also include Tiger Global Management and Dragoneer Investment Group. Talks have not been finalized, and deal terms may change.

Context: Premiums Declining; Example of Blockchain.com and DAT Companies

Crypto companies are once again raising billions, but investors are more frequently moving away from previous premiums. Blockchain.com is preparing for an IPO of around $500 million at a potential valuation of about $6 billion—significantly below the previous cycle’s peak of $14 billion.

According to a report by DWF Ventures, only four of the 20 largest digital treasury companies are trading above mNAV=1: Bit Digital, Strive, Hyperliquid Strategies, and BitMine. Most such securities are underperforming simple ownership of the underlying asset; when trading at a discount to NAV, issuing new shares becomes dilutive and undermines the core mechanics of the model.