Streaming device into amplifier question.

Hi all. I have a simple set up in my front room; a Cambridge CXN 100 streamer into a Denon PMA 600ne amplifier to B & W 606 s3 speakers. The Cambridge streams high quality music files from tidal and I’m very happy with the resultant sound. The connection from the Cambridge to the amp is via the orange coax cable that was supplied with the streamer. Does this mean that a digital signal is being sent to the Denon which then has to use its own dac to covert to analogue? If this is what’s happening, isn’t that a bit daft given the better dac is within the streamer? If I used the toslink option this would still be the case wouldn’t it? I guess what I’m asking is, is the dac in the streamer being bypassed and if so how should I correctly connect up? Or have I just misunderstood what’s going on? I have posted this in the spirit of ‘no stupid questions’
Your thoughts and comments will be very much appreciated

 

Too soon for replies but I think I’ve answered my own question now. Thanks to anyone who took the time to read.