This paper describes the first attempt of hardware implementation of Multistream Compression (MSC) algorithm. The algorithm is transformed to series of Finite State Machines with Datapath using Register-Transfer methodology. Those state machines are then implemented in VHDL to selected FPGA platform. The algorithm utilizes a special tree data structure, called MSC tree. For storage purpose of the MSC tree a Left Tree Representation is introduced. Due to parallelism, the algorithm uses multiple port access to SDRAM memory.