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 (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.

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.