The price of the rare demo album, called Spinning Man’ soared following a ‘fierce battle’ between keen bidders on Tuesday.
The Shape Of You hitmaker, 29, made 20 copies of the track and still owns 19 of them after previously stating that he didn’t want anybody to ‘get hold of a copy’.
Spinning Man consists of various love songs including Addicted, On My Mind and Misery, with the album being dug out from a drawer after being ‘forgotten’ about for many years.
Speaking of the amazing sale, auctioneer Paul Fairweather of Omega Auctions said: ‘An incredible price! We expected it to sell well but that certainly exceeded our expectations.
‘It was a fierce battle between four or five very serious bidders and we were blown away with the final price.’
It is said that Ed wrote the album while he was staying with relatives during his busking days and gave a copy of the album to a pal of his loved one.
The pal’s brother, Kevin, 48, went on to sell the CD. He told PA: ‘My brother put it in a drawer and forgot about it.’
Meanwhile, Ed previously said in his book, Ed Sheeran: A Visual Journey, that he penned the album after getting his heart broken by his first love.
He said: ‘In 2004, I made my very first album, Spinning Man, named after a picture that my dad had,” he said.
‘I burnt the CDs myself and made the covers. There were 14 songs, and they were all songs that rhymed.
‘One lyric went: ‘I’m a typical average teen if you know what I mean’.
‘There are probably 20 copies of Spinning Man in existence, and I have 19 of them. I don’t want anyone else to get hold of a copy.’
In further good news for Ed, the singer recently became a father after wife Cherry Seaborn gave birth to a baby girl named Lyra Antarctica Seaborn Sheeran.
The unusual name was inspired by the new dad’s favourite book series, His Dark Materials, by Philip Pullman.
Ed took to Instagram last week sharing a picture of Lyra’s booties and a colourful blanket and revealed Cherry gave birth the previous week.
He wrote: ‘Ello! A quick message from me as I have some personal news that I wanted to share with you…
‘Last week, with the help of an amazing delivery team, Cherry gave birth to our beautiful and healthy daughter – Lyra Antarctica Seaborn Sheeran.
‘We are completely in love with her. Both mum and baby are doing amazing and we are on cloud nine over here.
‘We hope that you can respect our privacy at this time. Lots of love and I’ll see you when it’s time to come back, Ed x.’