Kalshi in Talks for $750M Round at $40B Valuation as Baltimore Sues Over Sports Contracts

3 min readPublished 16 Aug 2026

According to The Information, Kalshi is negotiating a new funding round of no less than $750 million that would value the company at $40 billion, with Sequoia Capital and Wellington Management as the prospective lead investors; CoinDesk relayed the report on August 13 and Unchained followed on August 14. Both outlets attribute the reporting to people familiar with the matter and note neither has independently confirmed it.

The reported figure would nearly double Kalshi’s $22 billion valuation from a $1 billion raise in May, according to both CoinDesk and Unchained. Both outlets also note the final round size could land above $750 million.

What both outlets confirm

CoinDesk and Unchained agree on the core mechanics of the deal. Sequoia, which already holds a board seat at Kalshi, would be deepening an existing position. Wellington, a Boston-based manager that both outlets say oversees $1.3 trillion in client assets, would be making its first investment in Kalshi. Both outlets note Wellington has a history of taking private stakes in companies ahead of public listings, and both cite Kalshi CEO Tarek Mansour’s comment in June that a stock listing would not happen before 2027.

Both outlets also agree that Kalshi’s annualized revenue reached about $4 billion in July, and that sports contracts — boosted by 2026 World Cup betting — drive more than 80 percent of the company’s trading volume. Both note Polymarket has separately been reported to be seeking a $20 billion valuation.

Where the coverage diverges

Beyond the shared core, the two accounts pull from different figures that do not overlap. CoinDesk alone reports that Sequoia manages $56 billion in assets, that Kalshi claims 95 percent of U.S. prediction-market revenue — a figure CoinDesk attributes to a Sequoia statement — and that Polymarket generated $1.1 billion in revenue over the same period Kalshi hit $4 billion. CoinDesk alone also reports Polymarket’s $15 billion valuation following a $600 million investment from Intercontinental Exchange, and alone reports that Jeff Bandman, the lawyer who helped Kalshi secure its CFTC license in 2020, is returning as CEO of Kalshi Prime.

Unchained, meanwhile, is the only outlet to lay out Kalshi’s earlier valuation climb — $5 billion in September 2025 and $11 billion that November — ahead of the $22 billion May round. Neither outlet’s set of standalone figures appears in the other’s reporting, and the evidence available does not explain why.

The lawsuit CoinDesk’s version omits

Unchained alone reports that Baltimore Mayor Brandon Scott and the city council sued Kalshi and Polymarket in Baltimore City Circuit Court the same day the funding talks surfaced, arguing that their sports-related contracts function as unlicensed sports betting under state law. The suit also targets distribution partners Coinbase, Robinhood and Webull, contending that certain bundled products operate as sportsbook parlays. The city is seeking penalties, restitution and an injunction, according to Unchained. Kalshi’s position, per Unchained, has consistently been that its markets fall under exclusive CFTC oversight. CoinDesk’s article makes no mention of the Baltimore suit.

The coincidence of timing is notable: a funding round that would value Kalshi at $40 billion is being negotiated in the same week a U.S. city government is arguing in court that the product generating most of that valuation — sports contracts accounting for more than 80 percent of volume — is unlicensed gambling.

What remains unresolved

Whether Sequoia and Wellington actually lead or close the round, and at what final size, is not established by either report. Kalshi, Sequoia and Wellington did not respond to CoinDesk’s request for confirmation, and Unchained reports no independent comment from the companies either. It is also unclear from the available reporting whether the Baltimore litigation, or similar actions that might follow in other jurisdictions, could affect the round’s terms or timing.