$100 Million for Twitter. Now What?

According to the Wall St. Journal, Twitter could raise as much as $100 million from a group of seven investors that includes T. Rowe Price, Insight Venture Partners, Spark Capital and Institutional Venture Partners.

It was originally thought Twitter was going to do a $50-million raise but clearly there was so much demand that Twitter decided to take the cash on the table. The deal reportedly gives Twitter a $1-billion valuation.

So the $100-million question is: what does Twitter do with all that money given it still has about $30-million in the bank?

The most obvious option is Twitter can continue to aggressively grow its users without having to worry about pesky things such as a business model or generating revenue. It can strengthen its infrastructure and systems to support hyper-growth, which will, in theory, create more revenue opportunities down the road.

Another option is acquisitions, although to date this has not been part of Twitter’s corporate DNA. That said, there are some attractive targets that could be picked up that would barely leave a dent in Twitter’s cash reserves. Some of the leading candidates include Tweetdeck, Seesmic and TwitPic.

So what do you think Twitter will do with $100-million?