The guy looks solid and showed me his farm via videocall and he figured a way to somehow get really cheap electricity.
Am thinking of trying out, any advice?
No, mining cannot give you 40% APR. Pay attention.
Yes it can. Let's pretend I purchase an Avalon 741 for $818. Assuming it isn't a defect (which it shouldn't be, since Canaan has good quality control compared to BitMain), and that the difficulty doesn't change, I can mine ~140$ USD at today's exchange rates every month. Let's say my electricity costs 70$, so I made 70$ profit in a month. 70*12=840$. I'll subtract 240$ to compensate for difficulty increases, and end up with 600$ USD. Now, I can go to ebay or amazon on BCT and sell my Avalon for at least 500$, probably. Now I have 1100$, which is 34% APR. If I try to sell it for higher (probably 600$+), I could make a 40% APR.
Plus maybe some people can operate from places with really cheap electricity (e.g.: China and Malaysia 0.02usd kwj)