Is Hashrate Rental Considered a Financial Derivative? Why or Why Not?

Hashrate rental is generally not considered a traditional financial derivative, as it is a direct service contract for computational power rather than a contract whose value is derived from an underlying asset. However, it exhibits derivative-like characteristics.

The price of the rental is highly correlated with the future value of the underlying cryptocurrency (the block reward). It functions as a synthetic forward contract on mining revenue, allowing miners to hedge and speculators to take a leveraged position on the profitability of a specific coin.