Key Takeaways GameStop shares are dropping 17% in premarket trading Thursday, extending a post-earnings slide.After the bell Wednesday, the video-game retailer announced a $1.75 billion convertible note offering.

GameStop is raising money by selling special financial instruments called Convertible Senior Notes. They plan to sell $2.25 billion worth of these notes and might sell an additional $450 million if the buyers want more.

GameStop (GME) stock plummeted more than 23% Thursday after the video game seller announced that it intends to sell $1.75 billion worth of convertible bonds. In other words, GameStop is raising cash from investors by issuing debt in the form of convertible senior notes.