The summer after King Margad, and Guthorm with him, went out on an expedition against Bretland, where they made immense booty. But when the king saw the quantity of silver which was gathered he wanted to have the whole booty, and regarded little his friendship for Guthorm.
Guthorm was ill pleased that he and his men should be robbed of their share; but the king said,
"Thou must choose one of two things, — either to be content with what we determine, or to fight; and they shall have the booty who gain the victory; and likewise thou must give up thy ships, for them I will have."
Guthorm thought there were great difficulties on both sides; for it was disgraceful to give up ships and goods without a stroke, and yet it was highly dangerous to fight the king and his force, the king having sixteen ships and Guthorm only five. Then Guthorm desired three days' time to consider the matter with his people, thinking in that time to pacify the king, and come to a better understanding with him through the mediation of others; but he could not obtain from the king what he desired.
This was the day before St. Olaf's day. Guthorm chose the condition that they would rather die or conquer like men, than suffer disgrace, contempt and scorn, by submitting to so great a loss. He called upon God, and his uncle Saint Olaf, and entreated their help and aid; promising to give to the holy man's house the tenth of all the booty that fell to their share, if they gained the victory.
Then he arranged his men, placed them in battle order against the great force, prepared for battle, and gave the assault. By the help of God, and the holy Saint Olaf, Guthorm won the battle. King Margad fell, and every man, old and young, who followed him; and after that great victor, Guthorm and all his people returned home joyfully with all the booty they had gained by the battle.
Every tenth penny of the booty they had made was taken, according to the vow, to King Olaf the Saint's shrine; and there was so much silver that Guthorm had an image made of it, with rays round the head, which was the size of his own, or of his forecastle-man's head; and the image was seven feet high. The image thus produced was given by Guthorm to King Olaf of the Saint's temple, where it has since remained as a memorial of Guthorm's victory and King Olaf the Saint's miracle.