Woofun AI reports that prediction market platform Kalshi is negotiating a new financing round with investors, targeting a valuation of approximately $40 billion. The transaction could be completed as early as the third quarter of this year.

Previously, Kalshi closed a $1 billion financing round last month at a $22 billion valuation, backed by Coatue, Sequoia Capital, Andreessen Horowitz, and Morgan Stanley. Trading volume exceeded $17 billion last month, rising from under $5 billion a year ago, with roughly 65% derived from sports event prediction contracts.