Abstract:: In multi-channel neural signal acquisition systems, direct transmission and processing of raw data can be extremely power intensive and make hardware design more difficult due to the sheer volume of raw data. An effective solution to this problem is to compress the raw data prior to transmission and processing. The neuronal action potential signal has the characteristic of having a refractory period. In this paper, the digital marker output of the multichannel neural signal is defined as a sparse matrix in a certain time range, and the features of this sparse matrix are extracted, and the data is compressed dynamically using an optimized algorithm according to its features. The algorithm in this paper was verified in real time on a 32-channel neural acquisition hardware system using an FPGA as the central control hardware, and it was experimentally demonstrated that the dynamic sparse matrix compression algorithm proposed in this paper can achieve 83.4% data compression rate.