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If I were to short a stock currently valued at $100, I understand that $100 would be placed into my margin account. Can I use that $100 to purchase stocks?

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    No, you cannot use the credit received from shorting the stock. However, if share price dropped, it would generate SMA which you could withdraw from your account or use to support a new position.
    – Bob Baerker
    Jul 5, 2020 at 16:51

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Short answer is no. A detailed one here https://www.thestreet.com/personal-finance/dear-dagen-your-short-sale-proceeds-draw-no-interest-from-brokerages-766798

Even though you might see a balance in your brokerage account after shorting a stock, you're actually looking at a false credit, according to one big brokerage firm. That money is acting as collateral for the short position. So, you won't have use of these funds for investment purposes and won't earn interest on it.

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