tatra danava-daityanam
sangat te bhava asurah
drstva mad-anubhavam vai
sadyah kuntho vinanksyati
tatra—in that place; danava-daityanam—of the demons and the Danavas; sangat—because of the association; te—your; bhavah—mentality; asurah—demoniac; drstva—by observing; mat-anubhavam—My superexcellent power; vai—indeed; sadyah—immediately; kunthah—anxiety; vinanksyati—will be destroyed.
Because there you will see My supreme prowess, your materialistic ideas and anxieties that have arisen from your association with the demons and Danavas will immediately be vanquished.
The Lord assured Bali Maharaja of all protection, and finally the Lord assured him of protection from the effects of bad association with the demons. Bali Maharaja certainly became an exalted devotee, but he was somewhat anxious because his association was not purely devotional. The Supreme Personality of Godhead therefore assured him that his demoniac mentality would be annihilated. In other words, by the association of devotees, the demoniac mentality is vanquished.
satam prasangan mama virya-samvido
bhavanti hrt-karna-rasayanah kathah
(Bhag. 3.25.25)
When a demon associates with devotees engaged in glorifying the Supreme Personality of Godhead, he gradually becomes a pure devotee.
Thus end the Bhaktivedanta purports of the Eighth Canto, Twenty-second Chapter, of the Srimad-Bhagavatam, entitled “Bali Maharaja Surrenders His Life.”

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