Earlier quoted context omitted.
they don't lose anything if they're not forced to liquidate those bonds but can hold them to maturity. It seems like the real problem here is a lack of diversity in liabilities (all tech/biotech startups).
That's not true. When interest rates go up, they have to pay the higher rates on customer deposits, but they're not getting any more from their bonds. Perhaps they can spread the losses over 10 years, but the losses are the same.
They don't have to and have not been paying higher interest rates on deposits.
One concern is that depositors will realize they can get better returns on money market funds and withdraw from banks en masse.