Advice on Use Case

Hi, I am looking for some advice please. My use case is that I have a Sony STR DH550 Receiver which has a spare coax port and a spare HDMI port. The Receiver connects to some old but pretty good Wharfdale speakers.

I have about 80GB of FLAC files, plus I am considering getting a Spotify high quality subscription. I have AC900 wifi close to the stereo. I would like to simply play my FLAC files. At the moment the FLAC files are on a USB hard drive, but I could purchase a 128GB SD card and put all the music on the card along with the operating system just to have fewer cables.

I was thinking of setting up a Volumio music player on the Raspberry 3b+ and simply outputting the music to the stereo via the HDMI port for the Receiver’s DAC to handle. Is there any problem with that or should I purchase a DAC board with a coax output to the Receiver? From what I have read the HDMI should be fine, but I wondered if there was any special configuration I should be aware of, as basically the HDMI is for home theatre, not sound. Or would the music quality be degraded?

So in short would a configuration that looked like this work?

  1. Volumio OS
  2. Raspberry 3b+
  3. HDMI output
  4. SD card partitioned between OS and Music files
  5. Wifi enabled for Spotify

I would be most grateful for some advice on this.