How Does Hashrate Rental Act as a Form of Financial Hedging for a Miner?

Hashrate rental acts as a form of financial hedging by allowing the miner to lock in a guaranteed, immediate revenue stream for their computational power. Instead of facing the price volatility and block reward uncertainty of mining directly, the miner receives a fixed fiat or cryptocurrency payment for the rented hashrate.

This payment covers their operational costs (electricity, cooling) and guarantees a profit margin, effectively hedging against the risk of a coin's price drop or a sudden spike in network difficulty.