As we reported previously, Justin Thomas felt he had to sell his medal in order to buy a larger house for his family to expand into.
It has beaten its £60,000 estimate to sell for £88,000.
Lance-Corporal Thomas won the honour whilst serving in Iraq. He returned to a vehicle under fire and unleashed 8,000 machine gun rounds at insurgents allowing the re-grouping of his troop.
His actions are thought to have saved 20 lives.
Mr Thomas, now a civil servant living in Ponty-pridd, United Kingdom also sold his service medals at the auction.
He commented "If soldiers were paid more I might not be in this situation."
Since Thomas put his medal up for auction, four more Conspicuous Gallantry Medals, which are second only to the Victoria Cross, have been awarded bringing the total to 33.