Due to their low density and high specific strength, magnesium alloys offer great potential as a design material for lightweight construction. An economical and energy-efficient method for the production of magnesium wire is the technology of twin-roll casting. In this work, the deformation behaviour of twin-roll cast and heat-treated AZ31 wire pre-profile is investigated for the first time during the compression test at different temperatures (250–400 °C) and forming speeds (0.01–10 s−1). To obtain optimal parameters, a processing map is created, and the microstructural changes during the hot forming processes are determined by accompanying microstructure characterization through an optical microscope and scanning electron microscope. The heat treatment causes a reduction in segregation and a homogeneous microstructure. The average activating energy for plastic deformation of twin-roll cast and heat-treated magnesium alloy AZ31 is 159.008 kJ·mol−1. The instability region of the process map starts at a forming temperature of 250 °C and extends into the range of high forming speeds (1–10 s−1). In this area, cracks in the microstructure can be detected during hot forming. At high temperatures (300–350 °C), dynamic recrystallization at the grain boundaries is observed as the main forming mechanism. Based on these results and observations, existing models for describing the hot forming behaviour of magnesium alloys can be extended and validated.