Upgrade Internal DAC of Node or go with Atoll ST120.

Dac technology is always changing. I would go toa separate DAC and be able to upgrade when you want

The Gustard 26 Pro noticeably improved SQ in my system even though inhad upgraded the PSU in my NODE. More than your budget but I think a very good value and a solid unit

@temmple 

In addition to adding an external DAC consider adding a Teddy Pardo external LPS to your Node. The Node with the external LPS performs fantastic and then you can continue using the excellent BluOS platform. Good luck! 
 

Ron

Looking at upgrading to a external DAC for my Bluesound Node 

Several folks mentioned bypassing the DAC in the Blue Sound Node and using an alternate DAC, but no one explains how that is done. Can someone help a neophyte ?

There are three output options on the back of the Node --

- A pair of left and right analog outputs that use the internal DAC in the Node and connect to the right and left analog inputs of your amplifier.

- one coax and one optical digital output, either one of which can be connected to the input of an external DAC. Then the analog outputs of the DAC are connected to your amp.

Check out the images of the Node on a site like crutchfield.com