A couple of potential issues come to my mind.
1. Multichannel DSD is one of the most demanding tasks MC does, so there's a chance the Pi might not even be remotely powerful enough to handle it (not too sure with DSD bitstreaming, but if you're converting to DSD on-the-fly that won't work at all with a Pi). Not sure, I don't own any Pis to test this.
2. I don't think it's possible to output DSD over HDMI with a Pi (depending on where the HDMI output is connected, e.g. onboard video). In fact, I'm not sure if DSD over HDMI is even possible (or feasible) on a computer in general, partly due to video cards not supporting DSD via their HDMI outputs.
3. The receiver would have to support DoP, which is how MC for Linux handles and sends bitstreamed DSD.
Of course, I could be wrong, but I seem to recall that being the case. If I'm wrong, hopefully somebody corrects me.