Key Takeaways:
Kalshi, the largest US prediction market platform, generated $2 billion in annualized revenue as of June, roughly three times its level from November 2025, driven by a surge in sports-event trading around the NBA and World Cup, according to people familiar with the company's financials.
The New York-based company has engaged in early, informal discussions with investment banks about a potential initial public offering, The Information reported, citing people close to the matter. Any listing remains at least a year away, with late 2027 or 2028 the expected timeframe, the report said.
Kalshi is asking prospective IPO underwriters to integrate with its platform, giving banks' institutional clients direct access to trade on it, according to the report. The company closed a $1 billion Series F in May led by Coatue at a $22 billion valuation, with participation from Sequoia Capital, Andreessen Horowitz, Paradigm, Morgan Stanley and ARK Invest. Annualized trading volume has climbed to $178 billion from $52 billion, while institutional trading volume jumped 800 percent in the six months through early May.
The IPO discussions mark a strategic shift as Kalshi seeks to replicate the institutional growth trajectory of Coinbase. The company is actively marketing its event contracts to Wall Street proprietary trading desks and hedge funds, allowing traders to bet on outcomes such as Federal Reserve rate decisions and nuclear negotiations with Iran for less than $1 per contract.
Crypto Perpetual Futures and Regulatory Headwinds
Kalshi launched crypto perpetual futures in early June after receiving regulatory approval, allowing traders to take leveraged positions on digital asset prices with no expiration date. The product generated more than $8.5 billion in trading volume in its first two weeks, with fees temporarily waived, according to company disclosures.
The expansion into commodities perpetual futures has hit a legal roadblock. CME Group sued the Commodity Futures Trading Commission and Chairman Michael Selig on June 18, alleging the agency approved Kalshi's product expansion without following formal rulemaking procedures, bypassing the regulatory framework set by Congress. A CFTC spokesperson called the lawsuit "lawfare" and said the agency looks forward to responding. Kalshi spokesperson Elisabeth Diana said the lawsuit "has nothing to do with the law and everything to do with a fear of competition."
Sports contracts account for about 70 percent of Kalshi's trading volume and represent its biggest legal exposure. Multiple states have filed lawsuits accusing the platform of operating an unregistered sports-betting operation. Kalshi has defended itself by noting it is regulated by the CFTC under the Commodity Exchange Act.
The company also faces a management gap. Former Chief Financial Officer Saurabh Tejwani, who joined from Gopuff late last year, has departed, with Chief of Staff Alex Cuoci serving as interim CFO, according to people familiar with the matter.
This article is for informational purposes only and does not constitute investment advice.
