We present a novel algorithm that assigns codes to instructions during instruction code compression in order to minimize bus-related bit-toggling and thus reducing power consumption. The target application area is embedded systems, where power consumption is increasingly becoming a dominant design constraint. Our algorithm is based on a variant of quasi–arithmetic coding where coding allows for random access and fast table–based decoding. We take advantage of the approximations introduced to modify codes and reduce bit-toggling, while maintaining compression performance and decoding speed. We present the first work to explore the trade-offs between compression ratios and bus-related power consumption and show that high compression ratios do not necessarily result in the lowest power consumption. By using our method, bus-related power consumption has been reduced by as much as 35% without imposing any additional hardware costs.