Bitcoin took another step toward mainstream recognition as satellite-TV provider Dish Network Corp. will become the largest company yet known to accept payments in the digital currency.

The move shows the resilience of the currency after a string of scandals and regulatory actions raised doubts about bitcoin's future. The collapse of a major trading exchange helped lead bitcoin to lose two-thirds of its value in four months, but its price has rallied 27% over the past week. Coindesk's Bitcoin Price Index was quoted at $565.55...