Kalshi’s $40 Billion Target Prices Prediction Markets as Exchange Infrastructure

Kalshi, a regulated prediction market platform, is in talks to raise funding at a $40 billion valuation, nearly doubling its $22 billion valuation from seven weeks prior. The platform achieved $16.81 billion in monthly trading volume in May 2026 with $2 billion annualized revenue, commanding a 20x revenue multiple comparable to exchange infrastructure plays. However, the company faces significant regulatory risks from 12+ state lawsuits alleging unlicensed sports betting operations, with sports contracts representing up to 90% of revenue.