And instructed by Krishna, the gods in a body held that (part of Vāsuki's body) where the tail was, and the Daityas held by the fore-part of his body. And, O thou of measureless Splendour, the Asuras, smitten with the fire sprung from the breath of Vāsuki's hood, became enfeebled. And clouds scattered by the breath issuing from Vāsuki's mouth, showering down at his tail, the deities were enlivened.

In plain words: On Krishna's (Vishnu's) advice, the gods held the serpent's tail and the demons held its head. The fiery breath from Vasuki's head made the demons weak. Clouds blown by his breath rained on the tail end and refreshed the gods.