Musk had initially sent Bitcoin and other cryptocurrencies into a tailspin after the billionaire investor announced that his company, citing environmental concerns, was suspending the use of Bitcoin to purchase vehicles.
Dogecoin, a “meme coin” that has been touted by Musk in the past, increased in value by about 7% in the last 24 hours.
The news was a shot in the arm for investors after Bitcoin and other cryptocurrencies limped through the past few months.
Because it is responsible for about half of the world’s coal energy generation and is the leading emitter of carbon dioxide on Earth, the environmental toll of mining there is high.
“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk said at the time.
“I like bitcoin as a portfolio diversifier.