Businesses sell profitable contracts (crypto or otherwise) all the time. The mining operation doesn't want the crypto volatility. They want a buyer that is willing to pay them more than their costs are so they can be assured a profit. If BTC soared to $70k tomorrow every contract in existence today is profitable. And the mining business doesn't mind because they have the same profits as if BTC dropped to $1k tomorrow.

However, it still likely never makes sense to buy cloud mining contracts. Not because you can't make a profit. You can if the price increases. But you will never earn more than if you had just taken the cloud mining fee and bought your crypto instead of mining it.