Microsoft has now stated that Bitcoin can still be used on Microsoft accounts. So, seems the earlier communication was wrong.
“We continue to support Bitcoin for adding money to your Microsoft Account which can be used for purchasing content in the Windows and Xbox stores. We apologize for inaccurate information that was inadvertently posted to a Microsoft site, which is currently being corrected.”
Microsoft will no longer accept Bitcoin for Windows 10 and Windows 10 Mobile. The company adopted the Bitcoin currency in late 2014 with much fanfare. Now the company has silently removed support for Bitcoin in the Windows 10 Store.