Kalshi is negotiating approximately $1 billion in new funding at a valuation of about $40 billion, Reuters reported, with Sequoia Capital and Wellington Management discussing lead roles and Tiger Global Management and Dragoneer Investment Group also in talks. The financing remains unclosed, with a completion anticipated in the coming weeks but no final investor lineup or closing date announced. The proposed valuation is eight times Kalshi's $5 billion benchmark from October 2025 and follows financings at $11 billion in December 2025 and $22 billion in May 2026. Kalshi's annualized trading volume rose from $52 billion to $178 billion over six months, while institutional volume increased 800%. The prediction-market operator is expanding products for hedge funds, insurers and asset managers as it competes with established exchange operators. Its growth remains constrained by a legal dispute with state regulators: the U.S. Court of Appeals for the Sixth Circuit ruled on Sept. 25 that Ohio and Tennessee could regulate Kalshi's sports contracts under gambling laws, while Kalshi maintains that federal Commodity Futures Trading Commission oversight governs the products.