Spin of electrons about it's own axis, release of energy & COLLAPSE of atom?
You are confusing macroscopic spin with the spin angular momentum of electron here. Electron is a point entity and does not posses a macroscopic spin (i.e. it does not spin on its axis).
 It does have angular momentum which is expressed as 'spin angular momentum' which is of-course quantized. 

This link   by  John Rennie will be useful for understanding : The electron isn't spinning on it's own axis